for immediate release swire properties announces 2012 ... · 14 march 2013, hong kong - swire...
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For Immediate Release
Swire Properties Announces 2012 Annual Results
2012 2011
Results HK$M HK$M Change
Turnover 14,052 9,581 +46.7%
Gains on revaluation of investment properties 12,273 20,345 -39.7%
Profit attributable to Company’s shareholders
Adjusted underlying(1) 6,932 4,372 +58.6%
Underlying(1) 6,945 12,932 -46.3%
Reported 18,763 25,126 -25.3%
HK$ HK$ Change
Earnings per share
Adjusted underlying(1) 1.18 0.77 +53.2%
Underlying(1) 1.19 2.27 -47.6%
Reported 3.21 4.40 -27.0%
HK$ HK$ Change
Dividends per share
Special interim - 1.76 N/A
First interim 0.22 0.18 +22.2%
Second interim 0.38 - N/A
Financial Position 2012 2011 Change
Net debt (HK$M) 28,921 27,700 +4.4%
Gearing Ratio 15.0% 15.7% -0.7%pt
Net asset value per share(2) (HK$) 32.93 30.09 +9.4%
(1) Underlying profit adjusts principally for the impact of changes in the fair value of investment properties and the deferred tax on
investment properties. Adjusted underlying profit further adjusts for the impact of the disposal of investment properties and net impairment losses from hotels and trading properties.
(2) Net asset value refers to total equity attributable to the Company’s shareholders.
14 March 2013, Hong Kong - Swire Properties Limited today announced adjusted underlying attributable
profits of HK$6,932 million for 2012, a 58.6% increase from HK$4,372 million in 2011.
Gross rental income of the Company’s investment property portfolio increased by 5.4% to HK$9,015
million in 2012. In Hong Kong, there were positive rental reversions in the office portfolio throughout the
year. Occupancy levels remained high despite a slowdown in leasing activity. Demand for retail space in
Hong Kong continued to be robust in 2012. In Mainland China, the TaiKoo Hui development in
Guangzhou made its first full year rental contribution in 2012, after its completion in the second half of
2011. Net rental contributions from Sanlitun Village improved from 2011, reflecting active management of
the tenant portfolio, cost reductions and capital expenditure designed to enhance footfall and circulation.
Profits from property trading were HK$1,834 million in 2012. These principally arose from the completion
of the sale of 98 units at the AZURA residential development in Hong Kong.
Despite improved performances from the managed and non-managed hotels in Hong Kong, the hotel
operations recorded a lower underlying profit due to pre-opening expenses at the Mandarin Oriental in
TaiKoo Hui and EAST, Beijing at INDIGO.
In December 2012, Swire Properties agreed to acquire eight residential units at Hampton Court, 2
Draycott Park in Singapore as investment properties.
In January 2013, Swire Properties and Bal Harbour Shops entered into a joint venture agreement to
develop the retail component of Brickell CityCentre in Miami, Florida, U.S.A.
In March 2013, the company which owns the existing Citygate Outlets development at Tung Chung in
Hong Kong (in which the Group has a 20% equity interest) won a tender to develop an adjacent
commercial site.
Swire Properties Chairman Christopher Pratt commented on the company’s prospects: “We are cautious
about the outlook for office properties in Hong Kong in 2013. Demand from financial services companies
for office space in Central is likely to remain soft, although rents at Pacific Place are expected to prove
fairly resilient due to high occupancy. At Island East, rents are expected to remain robust owing to high
occupancy and continued demand.
Despite slower growth in the second half of 2012, the Hong Kong retail market is expected to continue to
benefit from local economic growth and from tourists from Mainland China. Demand for retail space,
particularly at prime locations, continues to be strong. Rents are expected to continue to increase.”
He added: “Demand for office space and rental rates are expected to remain stable in Mainland China in
2013. There has been some reduction in consumer confidence and lower growth in spending in Mainland
China, but retailers of internationally branded goods in the few high quality shopping malls remain
popular. Retail rents are expected to be steady in 2013.
Profits from property trading in Hong Kong are expected to be lower in 2013 than in 2012, but
nevertheless significant, with the completion of the ARGENTA development and the expected sale of the
remaining units at the AZURA development. The effect of substantial increases and other changes in
Hong Kong stamp duty on demand for luxury residential properties is uncertain. In the U.S.A., the
residential market in downtown Miami is expected to continue to improve in 2013. Excess condominium
supply has been largely absorbed and new condominium developments are being built.
In 2013, the hotel operations will benefit from the fact that EAST, Beijing will be in operation for its first full
year and from a contribution from the Mandarin Oriental in TaiKoo Hui, Guangzhou.”
- End -
About Swire Properties Swire Properties develops and manages commercial, retail, hotel and residential properties, with a particular focus on mixed-use development in prime locations at major mass transportation intersections. Listed on the Main Board of the Stock Exchange of Hong Kong, the Company’s investment portfolio in Hong Kong totals over 17 million sq ft (over 1.58 million sqm)* of gross floor area, with Island East and Pacific Place as its core holdings. In addition to Hong Kong, the Company has significant investments in Mainland China, the United States and the United Kingdom. In Mainland China, Swire Properties has a portfolio amounting to over 13.5 million sq ft (approximately 1.26 million sqm)*, including five mixed-use developments in Beijing, Guangzhou, Chengdu and Shanghai. Of these, Sanlitun Village and INDIGO in Beijing and TaiKoo Hui in Guangzhou have opened. Since 1980, the Company has been developing investment and trading properties on the island of Brickell Key in downtown Miami, Florida where it has created an acclaimed residential and commercial portfolio, including the new large-scale mixed-use project, Brickell CityCentre. Through Swire Hotels, the Company also creates and manages intriguing urban hotels in Hong Kong, Mainland China and the United Kingdom, aimed at providing an exceptional experience for travellers who seek individuality, style and personalised service. Visit Swire Properties’ website at www.swireproperties.com. * Gross floor area in respect of 100% of the properties excluding car park areas and not on an attributable basis.
For media enquiries, please contact:
Swire Properties Limited
Ms May Lam-Kobayashi
Head of Public Affairs
Tel: (852) 2844 3888
Email: [email protected]
Ms Lydia Tsui
Media Relations Manager
Tel: (852) 2844 3038
Email: [email protected]
Hong Kong Exchanges and Clearing Limited and The Stock Exchange of Hong Kong Limited take no
responsibility for the contents of this announcement, make no representation as to its accuracy or
completeness and expressly disclaim any liability whatsoever for any loss howsoever arising from or in
reliance upon the whole or any part of the contents of this announcement.
SWIRE PROPERTIES LIMITED
(Incorporated in Hong Kong with limited liability)
(Stock Code: 01972)
2012 Final Results
For further information, please contact:
Ms May Lam-Kobayashi, Tel: +852 2844 3981 (office) / +852 9156 3437 (mobile)
2012 FINAL RESULTS
CONTENTS
Page
Financial Highlights
1
Chairman’s Statement
2
Review of Operations
5
Financing
31
Financial Statements
34
Additional Information
49
Glossary
50
Financial Calendar and Information for Investors
51
2012 FINAL RESULTS
1
FINANCIAL HIGHLIGHTS
2012 2011
Results Note HK$M HK$M Change
Turnover 14,052 9,581 +46.7%
Operating profit 21,508 26,945 -20.2%
Profit attributable to the Company's shareholders
Adjusted underlying (a),(c) 6,932 4,372 +58.6%
Underlying (b),(c) 6,945 12,932 -46.3%
Reported 18,763 25,126 -25.3%
Cash generated from operations 8,116 7,396 +9.7%
Net cash inflow before financing 1,474 17,418 -91.5%
HK$ HK$ Change
Earnings per share
Adjusted underlying (d) 1.18 0.77 +53.2%
Underlying (d) 1.19 2.27 -47.6%
Reported (d) 3.21 4.40 -27.0%
HK$ HK$ Change
Dividends per share
Special interim - 1.76 N/A
First interim 0.22 0.18 +22.2%
Second interim 0.38 - N/A
2012 2011
Financial Position HK$M HK$M Change
Total equity (including non-controlling interest) 193,256 176,575 +9.4%
Net debt 28,921 27,700 +4.4%
Gearing Ratio (b) 15.0% 15.7% -0.7%pt
HK$ HK$ Change
Equity attributable to the Company’s shareholders per share
Underlying (b),(c) 34.01 30.90 +10.1%
Reported (b) 32.93 30.09 +9.4%
Notes:
(a) Adjusted underlying profit excludes the impact of changes in the fair value of investment properties and the deferred tax on
investment properties, as well as profit from the disposal of investment properties. Refer to glossary on page 50 for definition.
(b) Refer to glossary on page 50 for definition.
(c) A reconciliation between reported profit, underlying profit and adjusted underlying profit and reported equity and underlying equity
attributable to the Company’s shareholders is provided on pages 5 and 6.
(d) Refer to Note 9 in the accounts for the weighted average number of shares.
2012 2011
Underlying profit by segments HK$M HK$M
Property investment 5,083 4,343
Property trading 1,834 (71)
Hotels 15 100
Capital profits less impairments 13 8,560
6,945 12,932
2012 FINAL RESULTS
2
CHAIRMAN’S STATEMENT
Our consolidated profit attributable to shareholders
for 2012 was HK$18,763 million, compared to
HK$25,126 million in 2011. Adjusted underlying
profit attributable to shareholders, which principally
adjusts for changes in the valuation of investment
properties and profits from the disposal of
investment properties, increased by HK$2,560
million from HK$4,372 million in 2011 to
HK$6,932 million in 2012.
DDiivviiddeennddss
The Company’s policy is to pay dividends which
will average approximately 50% of the underlying
profit attributable to shareholders over the economic
cycle. We will reevaluate this policy in the light of
our financial position and the prevailing economic
climate.
The Directors have declared a second interim
dividend in lieu of final dividend of HK¢38 (2011
interim dividend in lieu of final dividend: HK¢18)
per share which, together with the first interim
dividend of HK¢22 per share paid in October 2012,
amount to full year dividends of HK¢60 per share.
The second interim dividend, which totals
HK$2,223 million (2011: interim dividend of
HK$1,053 million), will be paid on Thursday, 2nd
May 2013 to shareholders registered at the close of
business on the record date, being Friday, 5th
April
2013. Shares of the Company will be traded ex-
dividend from Tuesday, 2nd
April 2013.
The register of members will be closed on Friday, 5th
April 2013, during which day no transfer of shares
will be effected. In order to qualify for entitlement
to the second interim dividend, all transfer forms
accompanied by the relevant share certificates must
be lodged with the Company’s share registrars,
Computershare Hong Kong Investor Services
Limited, 17th
Floor, Hopewell Centre, 183 Queen’s
Road East, Hong Kong, for registration not later
than 4:30 p.m. on Wednesday, 3rd
April 2013.
KKeeyy DDeevveellooppmmeennttss
In January 2012, our shares were listed on The
Stock Exchange of Hong Kong Limited by way of
introduction.
In January 2012, redevelopment works commenced
at 23 Tong Chong Street in Quarry Bay. This
property is being redeveloped into serviced
apartments and is expected to be completed in late
2014.
In March 2012, the retail component of the INDIGO
development in Beijing started to open in phases.
The entire development, including retail, office and
hotel components, officially opened in September
2012. The Group has a 50% economic interest in
this development, which has a total area of 1.9
million square feet.
In March 2012, OPUS HONG KONG, a luxury
residential property designed by Pritzker Prize
winning architect Frank Gehry, was completed.
Swire Properties was responsible for the
redevelopment of this property, which is owned by
Swire Pacific Limited, and is responsible for its
leasing and management.
In May 2012, pre-sales started of units in the
ARGENTA luxury residential development in Hong
Kong. 6 of the 30 units have been pre-sold, with
completion expected in the second half of 2013.
In May 2012, Swire Properties established a US$3
billion Medium Term Note Programme. Notes with
a principal amount of US$500 million were issued
under the programme in June 2012. Further notes
with total principal amounts of HK$800 million and
US$500 million were issued in August 2012 and
March 2013 respectively.
In June 2012, the occupation permit for the property
at 28 Hennessy Road, Hong Kong, a 145,390 square
foot office building, was issued. Handover to tenants
commenced in the second half of 2012.
In June 2012, development works commenced at
the mixed-use development Brickell CityCentre in
Miami, U.S.A. Phase 1 of the development,
comprising retail, office, hotel and residential
components, is scheduled to be completed in 2015.
In September 2012, the occupation permit for the
AZURA residential development at Mid-Levels
West, Hong Kong was issued. As at 13th
March
2013, 111 units had been sold. Completion of the
sales of 98 of these units took place in 2012.
Completion of the sales of a further three units have
taken place up to 13th
March 2013. Completion of
the sales of ten units will take place later in 2013.
In December 2012, Swire Properties hosted
celebrations for its 40th anniversary at TaiKoo Place
2012 FINAL RESULTS
3
in Island East, Hong Kong, where Swire Properties
began operations in 1972.
In December 2012, Swire Properties agreed to
acquire eight residential units at Hampton Court, 2
Draycott Park in Singapore as investment properties.
In January 2013, the Mandarin Oriental Hotel in
TaiKoo Hui, Guangzhou, opened with 263 guest
rooms and 24 serviced apartments.
In January 2013, Swire Properties and Bal Harbour
Shops entered into a joint venture agreement to
develop the retail component of Brickell CityCentre
in Miami, Florida, U.S.A. The Group holds an
87.5% interest in the joint venture and will remain
the primary developer while Bal Harbour Shops will
contribute equity and its retail expertise as co-
developer.
In March 2013, the company which owns the
existing Citygate Outlets development at Tung
Chung in Hong Kong (in which the Group has a
20% equity interest) won a tender to develop an
adjacent commercial site.
OOppeerraattiinngg PPeerrffoorrmmaannccee
The increase in adjusted underlying profit from
HK$4,372 million in 2011 to HK$6,932 million in
2012 principally reflects a contribution of HK$1,834
million from property trading. Underlying profits
from property investment also increased. This
reflected positive rental reversions in Hong Kong,
improved performance at Sanlitun Village and the
first full year contribution from the TaiKoo Hui
development, offset in part by the loss of rental
income following the disposal of Festival Walk and
pre-opening expenses at INDIGO. Despite
improved performances from the managed and non-
managed hotels in Hong Kong, the hotel operations
recorded a lower underlying profit due to pre-
opening expenses at the Mandarin Oriental in
TaiKoo Hui and EAST, Beijing at INDIGO.
Gross rental income was HK$9,015 million in 2012
compared to HK$8,557 million in 2011. There were
positive rental reversions in the Hong Kong office
portfolio throughout the year. Occupancy levels
remained high despite a slowdown in leasing
activity. Demand for retail space in Hong Kong
continued to be robust during 2012.
In Mainland China, the TaiKoo Hui development in
Guangzhou made its first full year rental
contribution in 2012, after its completion in the
second half of 2011. Net rental contributions from
Sanlitun Village improved from 2011, reflecting
active management of the tenant portfolio, cost
reductions and capital expenditure designed to
enhance footfall and circulation.
The significant profits from property trading
principally arose from the completion of the sale of
98 units at the AZURA residential development in
Hong Kong.
Net finance charges were HK$1,367 million, a 7.5%
decrease from HK$1,477 million in 2011. The
decrease reflected interest income received from a
loan to our joint venture partner at the Daci Temple
development in Chengdu, a lower finance charge
arising from the movement in the fair value of a put
option held by the owner of the non-controlling
interest at Sanlitun Village, Beijing and lower
finance charges in Hong Kong due to lower average
borrowing levels, partially offset by higher net
finance charges in Mainland China on borrowings
incurred to fund capital expenditure at Sanlitun
Village, Beijing and TaiKoo Hui, Guangzhou.
Net investment property valuation gains in the
Group’s subsidiaries, plus the Group’s share of
investment property valuation gains in jointly
controlled and associated companies, before
deferred tax relating to investment properties in
Mainland China in 2012, was HK$12,865 million,
compared to a net gain in 2011 of HK$21,066
million.
FFiinnaannccee
Net debt as at 31st December 2012 was HK$28,921
million, compared with HK$27,700 million as at 31st
December 2011. Gearing decreased by 0.7
percentage points from 15.7% to 15.0%. Cash and
undrawn committed facilities totalled HK$9,278
million as at 31st December 2012, compared with
HK$9,183 million as at 31st December 2011. Swire
Properties will continue to refinance (as necessary
on maturity) inter-group funding provided by Swire
Pacific and will do so on a stand-alone basis without
recourse to Swire Pacific.
2012 FINAL RESULTS
4
SSuussttaaiinnaabbllee DDeevveellooppmmeenntt
The Company recognises the importance of acting
responsibly towards those with whom it deals,
including employees and the communities in which
we operate, and towards the natural environment. In
2012, TaiKoo Hui, our mixed-use development in
Guangzhou, achieved LEED Gold certification and
our INDIGO development in Beijing achieved
LEED Platinum and Gold certifications. The Group
is providing US$1 million per year in research
funding over the period 2012 to 2014 to our Joint
Research Centre for Building Energy Efficiency and
Sustainability with Tsinghua University.
PPrroossppeeccttss
We are cautious about the outlook for office
properties in Hong Kong in 2013. Demand from
financial services companies for office space in
Central is likely to remain soft, although rents at
Pacific Place are expected to prove resilient due to
high occupancy. At Island East, rents are expected
to remain robust owing to very high occupancy and
stronger demand.
Despite slower growth in the second half of 2012,
the Hong Kong retail market is expected to continue
to benefit from local economic growth and from
tourists from Mainland China. Demand for retail
space, particularly at prime locations, continues to
be strong. Rents are expected to continue to
increase.
Demand for office space and rental rates are
expected to remain stable in Mainland China in
2013. There has been some reduction in consumer
confidence and lower growth in spending in
Mainland China, but retailers of internationally
branded goods in the few high quality shopping
malls remain popular. Retail rents are expected to
be steady in 2013.
Profits from property trading in Hong Kong are
expected to be lower in 2013 than in 2012, but
nevertheless significant, with the completion of the
ARGENTA development and the expected sale of
the remaining units at the AZURA development.
The effect of substantial increases and other changes
in Hong Kong stamp duty on demand for luxury
residential properties is uncertain. In the U.S.A., the
residential market in downtown Miami is expected
to continue to improve gradually in 2013. Excess
condominium supply has been largely absorbed and
new condominium developments are being built.
In 2013, the hotel operations will benefit from the
fact that EAST, Beijing will be in operation for its
first full year and from a contribution from the
Mandarin Oriental in TaiKoo Hui, Guangzhou.
On behalf of the shareholders and my fellow
Directors, I wish to express our appreciation to all
our employees, whose commitment and hard work
have been central to our continuing success.
By Order of the Board
SWIRE PROPERTIES LIMITED
Christopher Pratt
Chairman
Hong Kong, 14th
March 2013
2012 FINAL RESULTS
5
REVIEW OF OPERATIONS
2012
HK$M
2011
HK$M
Turnover
Gross rental income derived from
Offices 5,008 4,537
Retail 3,675 3,710
Residential 332 310
Other revenue (1) 108 94
Property investment 9,123 8,651
Property trading 4,147 213
Hotels 782 717
Total turnover 14,052 9,581
Operating profit/(loss) derived from
Property investment 6,879 6,743
Valuation gains on investment properties 12,273 20,345
Property trading 2,395 (50)
Hotels (39) (93)
Total operating profit 21,508 26,945
Share of post-tax profits from jointly controlled and associated companies 821 1,007
Attributable profit 18,763 25,126
(1) Other revenue is mainly estate management fees
Additional information is provided in the following section to reconcile reported and underlying profit and equity
attributable to the Company’s shareholders. These reconciling items principally adjust for the net revaluation
movements on investment properties and the associated deferred tax in Mainland China and for other deferred tax
provisions in relation to investment properties. There is a further adjustment to remove the effect of the movement
in the fair value of the liability in respect of a put option in favour of the owner of a non-controlling interest in
Sanlitun Village. Adjusted underlying profit excludes profits from the disposal of investment properties and net
impairment losses from our hotels and trading properties.
Note
2012
HK$M
2011
HK$M
Underlying profit
Profit attributable to the Company’s shareholders per accounts 18,763 25,126
Adjustments re investment properties:
Revaluation of investment properties (a) (12,865) (21,066)
Deferred tax on investment properties (b) 664 526
Realised profit on sale of investment properties (c) 176 8,020
Depreciation of investment properties occupied by the Group (d) 15 22
Non-controlling interests’ share of revaluation movements less deferred tax 17 45
Movement in the fair value of the liability in respect of a put option in favour
of the owner of a non-controlling interest in Sanlitun Village
(e)
175
259
Underlying profit attributable to the Company’s shareholders 6,945 12,932
Other significant items:
Profit on sale of investment properties (9) (8,615)
Net impairment (reversal) / loss (4) 55
Adjusted underlying profit attributable to the Company’s shareholders 6,932 4,372
2012 FINAL RESULTS
6
Note
2012
HK$M
2011
HK$M
Underlying equity
Equity attributable to the Company’s shareholders per accounts 192,614 176,043
Deferred tax on investment properties 3,949 3,285
Unrecognised valuation gains on hotels held as part of mixed-use developments (f) 1,736 912
Revaluation of investment properties occupied by the Group 646 476
Cumulative depreciation of investment properties occupied by the Group 38 33
Underlying equity attributable to the Company’s shareholders 198,983 180,749
Underlying non-controlling interests 648 576
Underlying equity 199,631 181,325
Notes:
(a) This represents the net revaluation movements as shown in the consolidated income statement and the Group's share of net revaluation
movements of jointly controlled and associated companies.
(b) This represents deferred tax movements on the Group’s investment properties, plus the Group’s share of deferred tax movements on
investment properties held by jointly controlled and associated companies. These principally comprise the deferred tax on revaluation
movements on investment properties in Mainland China and deferred tax provisions made in respect of investment properties held for
the long-term where it is considered that the liability will not reverse for some considerable time.
(c) Prior to the implementation of HKAS 40, changes in the fair value of investment properties were recorded in the revaluation reserve
rather than the consolidated income statement. On sale, the revaluation gains were transferred from the revaluation reserve to the
consolidated income statement.
(d) Prior to the implementation of HKAS 40, no depreciation was charged on investment properties occupied by the Group.
(e) The value of the put option in favour of the owner of a non-controlling interest in Sanlitun Village is calculated principally by reference
to the estimated fair value of the portions of the Sanlitun Village investment property in which the minority partner is interested.
(f) Under HKAS 40, hotel properties are stated in the accounts at cost less accumulated depreciation and any provision for impairment
losses, rather than at fair value. If HKAS 40 did not apply, those hotel properties owned by subsidiary and jointly controlled companies
and held for the long-term as part of mixed-use property developments would be accounted for as investment properties. Accordingly,
any increase or write-down in their value would be recorded in the revaluation reserve rather than the consolidated income statement.
Underlying Profit Adjusted underlying profit in 2012 increased by HK$2,560 million, from HK$4,372 million to HK$6,932 million.
This principally reflected an increase in profits from property trading of HK$1,905 million, which in turn arose
largely from the sale of residential units at AZURA in Hong Kong. Profits from property investment increased by
HK$474 million, due to higher rental income in Hong Kong, an improvement in performance at Sanlitun Village
in Beijing and the first full year contribution from the TaiKoo Hui development in Guangzhou, partially offset by
loss of rental income from Festival Walk following its disposal in August 2011 and pre-opening expenses at
INDIGO in Beijing. The hotel portfolio recorded a lower profit in 2012 as the improved results of the managed
hotels and non-managed hotels were more than offset by pre-opening expenses at EAST, Beijing and the Mandarin
Oriental Hotel in TaiKoo Hui. The movement in non-recurring items reflected the absence of one-off expenses
incurred in connection with the listing of the shares of the Company on The Stock Exchange of Hong Kong
Limited.
2012 FINAL RESULTS
7
Portfolio Overview The aggregate gross floor area (“GFA”) attributable to the Group as at 31
st December 2012 was approximately
29.6 million square feet.
Out of the aggregate GFA attributable to the Group, approximately 25.1 million square feet are investment
properties, comprising completed investment properties of approximately 20.8 million square feet and investment
properties under development or held for future development of approximately 4.3 million square feet. In Hong
Kong, this investment property portfolio comprises approximately 14.4 million square feet attributable to the
Group of primarily Grade A office and retail premises, hotels, serviced apartments and other luxury residential
accommodation. In Mainland China, Swire Properties has interests in five major commercial mixed-use
developments in prime locations in Beijing, Shanghai, Guangzhou and Chengdu. These developments are
expected to comprise approximately 8.4 million square feet of attributable GFA when they are all completed.
Outside Hong Kong and Mainland China, the investment property portfolio comprises the Brickell CityCentre
project in Miami in the U.S.A. and interests in hotels in the U.S.A. and the U.K.
The tables below illustrate the GFA (attributable to the Group) of the investment property portfolio as at 31st
December 2012.
Completed Investment Properties
(GFA attributable to the Group in million square feet)
Office
Retail
Hotels (1)
Residential/
Serviced
Apartments
Total
Hong Kong 10.6 2.4 0.7 0.6 14.3
Mainland China 2.0 3.0 0.9 0.1 6.0
U.S.A. and Others - - 0.5 - 0.5
TOTAL 12.6 5.4 2.1 0.7 20.8
Investment Properties under development or held for future development
(expected GFA attributable to the Group in million square feet)
Office
Retail
Hotels (1)
Residential/
Serviced
Apartments
Total
Hong Kong - - - 0.1 0.1
Mainland China 0.9 1.1 0.4 - 2.4
U.S.A. 1.0 0.5 0.2 0.1 1.8
TOTAL 1.9 1.6 0.6 0.2 4.3
Total Investment Properties
(GFA (or expected GFA) attributable to the Group in million square feet)
Office
Retail
Hotels (1)
Residential/
Serviced
Apartments
Total
TOTAL 14.5 7.0 2.7 0.9 25.1
(1) Hotels are accounted for under property, plant and equipment in the accounts.
The trading property portfolio comprises land, apartments and offices under development in Hong Kong, in Miami
in the U.S.A. and in Mainland China, together with the remaining units for sale at AZURA and 5 Star Street in
Hong Kong and at the ASIA residential development in Miami in the U.S.A..
2012 FINAL RESULTS
8
The table below illustrates the GFA (or expected GFA) attributable to the Group of the trading property portfolio
as at 31st December 2012.
Trading Properties
(GFA (or expected GFA) attributable to the Group in million square feet)
Completed
Under
Development
or held for
future
development
Total
Hong Kong 0.1 0.8 0.9
Mainland China - 0.7 0.7
U.S.A. - 2.9 2.9
TOTAL 0.1 4.4 4.5
2012 FINAL RESULTS
9
Investment Properties – Hong Kong
Offices
Overview
The completed office portfolio in Hong Kong comprises an aggregate of 10.9 million square feet of space on a
100% basis. Total attributable gross rental income from our office properties in Hong Kong was HK$4,985
million in 2012. As at 31st December 2012, our office properties in Hong Kong were valued at HK$124,620
million. Of this amount, Swire Properties’ attributable interest represented HK$120,873 million.
Hong Kong Office Portfolio
Gross Floor Area (sq.ft.)
(100% Basis)
Occupancy
(as at 31st Dec 2012)
Attributable
Interest
Pacific Place 2,186,433 97% 100%
Cityplaza 1,632,930 98% 100%
TaiKoo Place Office Towers (1) 3,136,541 99% 50% / 100%
One Island East 1,537,011 100% 100%
Techno Centres (2) 1,816,876 100% 100%
Others (3) 606,977 99% 20% / 50%/100%
Total 10,916,768
(1) Including PCCW Tower of which Swire Properties owns 50%.
(2) The occupancy rate at 31st December 2012 excludes Somerset House as the property is planned for redevelopment in 2013.
(3) Others comprise One Citygate (20% owned) , 625 King’s Road (50% owned) and 28 Hennessy Road (wholly-owned), which was
completed in the fourth quarter of 2012. The occupancy rate at 31st December 2012 excludes 28 Hennessy Road.
Gross rental income from the Group’s Hong Kong office portfolio for 2012 increased by 7% over 2011, to
HK$4,798 million. The Hong Kong offices performed well in 2012. Demand for space was strong in the first
half, both from new tenants and from existing tenants taking expansion space. Demand slowed in the second half,
but growth in rental income continued as a result of reversionary rent increases. Occupancy rates at Pacific Place
and Island East remained high throughout the year. As at 31st December 2012, the overall office portfolio as
shown in the table above was 98% let.
The table below shows the mix of tenants of the office properties by the principal nature of their businesses (based
on internal classifications) as a percentage of the office area attributable to the Group as at 31st December 2012.
Office Area Attributable to the Group by Tenants’ Trades
(As at 31st December 2012)
Banking/Finance/Securities/Investment 31.3%
Professional Services (Accounting/Legal/Management Consulting/Corporate Secretarial) 9.8%
Insurance 7.0%
Technology/Media/Telecoms 16.3%
Real Estate/Construction/Development/Architecture 8.7%
Trading 15.5%
Advertising and Public Relations 3.8%
Others 7.6%
As at 31
st December 2012, the top ten office tenants (based on rental income in the twelve months ended 31
st
December 2012) together occupied approximately 21% of the total office area in Hong Kong.
2012 FINAL RESULTS
10
Pacific Place
The offices at One, Two and Three Pacific Place performed relatively well in 2012 despite increased vacancy in
Central and thin demand from Central based tenants. The occupancy rate was 97% as at 31st December 2012.
Major new lettings concluded in 2012 were Watson Farley Williams, Beijing Poly International Auctions and Neo
Derm. Korean Exchange Bank, Bank of Japan, Michael Page, Erste Group Bank, Denis Chang Chambers, Kim
Eng Securities, Mirae Asset Investment Management, MGPA and Goodman renewed their leases.
Island East
Cityplaza One, Three and Four performed strongly in 2012. The occupancy rate was 98% as at 31
st December
2012. New tenants in 2012 included Jardine Lloyd Thompson and Deloitte. Nikon, OTIS, MetLife, Nokia,
Juniper Networks, MSIG Insurance, Cathay Pacific Holidays and Guardian Property Management & Savills
Property Management renewed their leases.
The TaiKoo Place Office Towers comprise six office towers (including PCCW Tower, in which we have a 50%
interest). The occupancy rate was 99% at 31st December 2012. Major new lettings and existing tenants taking
additional space in 2012 were B.A.T. China, Bulgari, China CITIC Bank International, LVMH Watch & Jewelery,
Lenovo, QBE and Wrigley’s. ANZ, BP Asia, Benoy, Cable & Wireless, Cargill, Godiva, JC Decaux, Logitech,
McDonald’s, Philippe Charriol, Pure Yoga, RBS, RSA, Turner Broadcasting System and The Stock Exchange of
Hong Kong renewed their leases.
One Island East, our landmark property in Island East, had an occupancy rate of 100% as at 31st December 2012.
The three Techno Centres performed strongly despite the planned redevelopment of Somerset House in 2013. As
at 31st December 2012, the occupancy rate of the other two Techno Centres (Cornwall House and Warwick House)
was 100%.
Hong Kong Office Market Outlook
We remain cautious about the outlook for 2013. Demand, particularly from the finance sector, is likely to remain
soft due to uncertain market conditions. However, occupancy at Pacific Place is high and there are no major
leases expiring until the latter part of 2013. Rents in Pacific Place are therefore expected to prove fairly resilient in
2013.
Our completed office portfolio expanded in the fourth quarter of 2012 with the completion of 28 Hennessy Road
(145,390 square feet). Two of the 24 floors have been leased. The property continues to attract interest from
smaller businesses currently based in Central.
Refurbishment at our 81,346 square feet property at 8 Queen’s Road East is expected to be completed in the first
half of 2013. The entire building has been leased for a ten-year term.
At Island East, rentals are expected to remain robust due to high occupancy. Somerset House, one of the techno-
centres, is planned for redevelopment in 2013.
The following table shows the percentage of the total rental income attributable to the Group from the office
properties in Hong Kong, for the month ended 31st December 2012, derived from leases expiring in the periods
with no committed renewals or new lettings. Tenancies accounting for approximately 17% of the rental income in
the month of December 2012 are due to expire in 2013, with a further 19% due to expire in 2014.
Office Lease Expiry Profile (As at 31st December 2012)
2013 17.0%
2014 18.5%
2015 & Beyond 64.5%
2012 FINAL RESULTS
11
Retail
Overview
The completed retail portfolio in Hong Kong comprises an aggregate of 2.8 million square feet of space on a
100% basis, principally The Mall, Pacific Place, Cityplaza in Island East, and Citygate Outlets at Tung Chung.
The malls are wholly-owned by Swire Properties (except for Citygate Outlets, in which Swire Properties has a
20% interest) and are managed by Swire Properties. Total attributable gross rental income from our retail
properties in Hong Kong was HK$2,572 million in 2012. As at 31st December 2012, our retail properties in Hong
Kong were valued at HK$49,725 million. Of this amount, Swire Properties attributable interest represented
HK$44,606 million.
Hong Kong Retail Portfolio
Gross Floor Area (sq.ft.)
(100% Basis)
Occupancy
(as at 31st Dec 2012)
Attributable
Interest
The Mall, Pacific Place 711,182 100% 100%
Cityplaza Mall 1,105,227 100% 100%
Citygate Outlets 462,439 100% 20%
Others (1) 530,467 100% 20%/60%/100%
Total 2,809,315
(1) Others largely comprise Taikoo Shing neighbourhood shops and StarCrest retail premises (which are wholly-owned), Island Place retail
premises (60% owned) and Tung Chung retail premises (20% owned).
Rental income from the retail portfolio in Hong Kong improved in 2012, with positive rental reversions throughout
the portfolio, reflecting strong demand for retail space and the lack of supply in prime locations.
Gross rental income from the retail portfolio was HK$2,496 million in 2012, a decrease of 16% from 2011, due to
the loss of rental contribution from Festival Walk following its disposal. Disregarding Festival Walk, gross rental
income from the retail portfolio increased by 5% from 2011. Rental reversions were generally positive and were
particularly strong at Pacific Place, reflecting strong demand for retail space and the expectation of continued
strong retail sales in 2013.
Retail sales in the principal malls managed by the Group were 4.7% higher in 2012 than in 2011. Occupancy at
the Group’s wholly-owned malls was effectively 100% throughout the year.
The table below show the mix of the tenants of the retail properties by the principal nature of their businesses
(based on internal classifications) as a percentage of the retail area attributable to the Group as at 31st December
2012.
Retail Area Attributable to the Group by Tenants’ Trades
(As at 31st December 2012)
Department Stores 23.1%
Food & Beverages 14.6%
Cinemas 5.0%
Jewellery & Watches 1.6%
Fashion & Accessories 23.3%
Ice Rinks 1.1%
Supermarket 3.4%
Others 27.9%
As at 31st December 2012, the top ten retail tenants (based on rental income in the twelve months ended 31
st
December 2012) together occupied approximately 30% of our total retail area in Hong Kong.
2012 FINAL RESULTS
12
The Mall, Pacific Place
The Mall at Pacific Place is an integral part of the mixed-use Pacific Place development. The office and the four
hotels at Pacific Place provide a secure flow of shoppers for the mall. Retail sales at The Mall increased by 0.3%
in 2012, after adjusting for closures or fitting out of department stores reflecting changes in tenants. Average same
store growth in 2012 (disregarding major shops which were closed or fitted out in 2011 and 2012) was 3.3%.
The Mall remained virtually fully let during the year, with the only void periods resulting from tenant changes.
The space previously occupied by Lane Crawford has been reconfigured to include Burberry’s flagship store and a
beauty gallery to house retailers of upscale cosmetic and skin care brands. An additional arcade has been created
to enhance pedestrian flow within the Mall.
Cityplaza Mall
Cityplaza is one of the most popular regional shopping centres in Hong Kong and is the biggest such centre on
Hong Kong Island. It principally serves Hong Kong residents, but the opening of the adjacent EAST Hotel
resulted in higher patronage from visitors from outside Hong Kong. Retail sales increased by 6.0% in 2012. The
property was virtually fully occupied during 2012.
Citygate Outlets
Sales at Citygate Outlets, the only outlet mall in Hong Kong, increased by 21.2% in 2012. The tenth floor of One
Citygate, the office building which is connected to the outlet mall, was converted to retail use in December 2011,
with encouraging results. Citygate Outlets remained virtually fully let at all times in 2012.
Hong Kong Retail Market Outlook
Despite uncertainties in the global economy and slower growth in the sale of luxury goods in the second half of
2012, the Hong Kong retail market is expected to continue to benefit from local economic growth and from
tourists from Mainland China. Demand for retail space, particularly at prime locations, continues to be strong.
Rents are expected to continue to increase.
The following table shows the percentage of the total rental income attributable to the Group from the retail
properties in Hong Kong, for the month ended 31st December 2012, derived from leases expiring in the periods
with no committed renewals or new lettings. Tenancies accounting for approximately 15% of the rental income in
the month of December 2012 are due to expire in 2013, with a further 21% due to expire in 2014.
Retail Lease Expiry Profile (As at 31st December 2012)
2013 14.6%
2014 21.1%
2015 & Beyond 64.3%
2012 FINAL RESULTS
13
Residential The completed residential portfolio comprises Pacific Place Apartments at Pacific Place in Hong Kong and a small
number of luxury houses and apartments on Hong Kong Island, with a total floor area of 483,711 square feet.
Occupancy at the residential portfolio was approximately 86% at 31st December 2012, reflecting a reduction in
demand for space at Pacific Place Apartments in the last quarter of 2012.
Demand for our residential properties is expected to remain stable in 2013.
Investment Properties Under Construction
8 Queen’s Road East
Swire Properties has leased the whole of 8 Queen’s Road East, a 19-storey commercial building with 81,346
square feet of space, for a ten year term. Refurbishment of the building is scheduled to be completed later in the
first half of 2013.
23 Tong Chong Street
The property at 23 Tong Chong Street in Quarry Bay is being redeveloped into serviced apartments and is
expected to be completed in 2014. The aggregate floor area upon completion will be approximately 75,000 square
feet.
2012 FINAL RESULTS
14
Investment Properties – Mainland China
Overview The property portfolio in Mainland China comprises an aggregate of 13.5 million square feet of space (9.1 million
square feet attributable to the Group), of which 7.3 million square feet are completed properties with the remaining
6.2 million square feet under development. Total attributable gross rental income from our investment properties
in Mainland China was HK$1,457 million in 2012. As at 31st December 2012, our investment property portfolio
in Mainland China was valued at HK$44,269 million. Of this amount, Swire Properties’ attributable interest
represented HK$31,341 million.
Property Portfolio (1) – Mainland China
Gross Floor Area (sq.ft.) (100% Basis)
Total
Investment
Properties
Hotels,
Trading
Properties and
Others
Year of
Opening
Attributable
interest
Completed
Sanlitun Village, Beijing (2) (3) 1,465,771 1,296,308 169,463 2008 80%/ 100%
TaiKoo Hui, Guangzhou(4) 3,840,197 3,256,013 584,184 2011 97%
INDIGO, Beijing(5) 1,893,226 1,534,957 358,269 2011 50%
Beaumonde Retail Podium,
Guangzhou 90,847 90,847 - 2008 100%
Others (6) 29,584 2,898 26,686 N/A 100%
Sub-Total 7,319,625 6,181,023 1,138,602
Under Development
Dazhongli Project, Shanghai 3,469,398 2,926,204 543,194 2016 50%
Daci Temple Project, Chengdu (7) 2,712,077 1,223,674 1,488,403 2014 50%
Sub-Total 6,181,475 4,149,878 2,031,597
Total 13,501,100 10,330,901 3,170,199
(1) Including the hotel and property trading components of these projects.
(2) Village North opened in 2010.
(3) Swire Properties owns 80% of the retail component of Sanlitun Village.
(4) The hotel and serviced apartments at TaiKoo Hui officially opened in January 2013.
(5) The office at INDIGO opened in 2011 while the retail mall and hotel opened in 2012.
(6) Including Longde Building and Tianhe Xinzuo residential apartments, which were acquired in 2005 and 2006 respectively.
(7) The office portion of the Daci Temple project is being developed for trading purposes.
The Group’s gross rental income from our investment properties in Mainland China in 2012 amounted to
HK$1,373 million, comprising HK$194 million from office properties and HK$1,179 million from retail
properties.
2012 FINAL RESULTS
15
The table below illustrates the expected growth in attributable area of the completed property portfolio in
Mainland China.
Attributable Area of Completed Property Portfolio in Mainland China
(sq ft.) 2012 2013 2014 2015
2016 &
Onwards
Sanlitun Village, Beijing 1,206,509 1,206,509 1,206,509 1,206,509 1,206,509
TaiKoo Hui, Guangzhou 3,724,991 3,724,991 3,724,991 3,724,991 3,724,991
INDIGO, Beijing 946,613 946,613 946,613 946,613 946,613
Beaumonde Retail Podium, Guangzhou 90,847 90,847 90,847 90,847 90,847
Dazhongli Project, Shanghai - - - - 1,734,699
Daci Temple Project, Chengdu - 1,233,087 1,356,039 1,356,039 1,356,039
Others 29,584 29,584 29,584 29,584 29,584
Total 5,998,544 7,231,631 7,354,583 7,354,583 9,089,282
2012 FINAL RESULTS
16
Completed Investment Properties
SSaannlliittuunn VViillllaaggee,, BBeeiijjiinngg
Sanlitun Village, Beijing
Gross Floor Area (sq.ft.)
(100% Basis)
Occupancy
(as at 31st Dec 2012)
Attributable
Interest
Retail – Village South 776,909 97% 80%
Retail – Village North 519,399 90% 80%
Hotel – The Opposite House (1) 169,463 66% 100%
Total 1,465,771
(1) The hotel is accounted for under property, plant and equipment in the accounts and the occupancy rate is the average for the year 2012.
Sanlitun Village, a low-density complex, comprises two neighbouring retail sites and a hotel in the Chaoyang
District of Beijing. Sanlitun Village has over 200 shops and restaurants, including flagship stores, shops selling
lifestyle brands, and restaurants serving regional and international cuisines.
Village South concentrates on global fashion and lifestyle brands with a youthful appeal, including Mainland
China’s first Adidas global brand centre and first Apple store. During 2012, 27 new tenants were introduced in
Village South, so further increasing the diversity of the tenants. Village North focuses on international and Chinese
designer fashion brands, as well as restaurants and cafés. Miu Miu opened a flagship store at Village North in
2012, its largest in Asia.
Gross rental income at Sanlitun Village increased steadily in 2012, primarily reflecting increases in base rents at
both Village South and Village North. As at 31st December 2012, occupancy rates were 97% at Village South and
90% at Village North.
Sanlitun Village, with its open-plan architecture inspired by the concept of courtyards and hutongs, has become a
Beijing fashion destination. Swire Properties will continue to invest in improvement works designed to enhance
footfall and circulation, and to reinforce the property’s positioning. Demand for retail space remains strong in
Beijing, with owners of international brands continuing to focus heavily on Mainland China. This is expected to
have a positive impact on occupancy and rents.
Swire Properties owns 80% of the retail component of Sanlitun Village with the remaining 20% interest held by
Gateway China Fund I, a fund managed by Gaw Capital. The fund has an option to sell its 20% interest to Swire
Properties before the end of 2013. As at 31st December 2012, Sanlitun Village (excluding The Opposite House)
was valued at HK$9,790 million. Of this amount, Swire Properties’ 80% attributable interest represented
HK$7,832 million.
BBeeiijjiinngg RReettaaiill MMaarrkkeett OOuuttllooookk
Retail rents in Beijing are expected to grow steadily in 2013. This reflects continued demand from retailers of
international and local brands. Enquiries and inspections are strong. Owners of a diverse range of brands want to
enter the Mainland China market. There is strong demand for space to be used for large flagship stores.
2012 FINAL RESULTS
17
TaiKoo Hui, Guangzhou
TaiKoo Hui, Guangzhou
Gross Floor Area (sq.ft.)
(100% Basis)
Occupancy
(as at 31st Dec 2012)
Attributable
Interest
Retail 1,472,730 99% 97%
Office 1,731,766 79% 97%
Hotel (1) 584,184 N/A 97%
Serviced Apartments 51,517 N/A 97%
Total 3,840,197 97%
(1) The hotel is accounted for under property, plant and equipment in the accounts and was opened in January 2013.
TaiKoo Hui is Swire Properties’ largest investment property in Mainland China. It is a large-scale retail-led
complex in the Tianhe Central Business District of Guangzhou, with a total area of approximately 3.84 million
square feet. Located at a transport hub, it has direct access to the city’s metro system and is close to the East
Railroad Station, which connects to Hong Kong. It incorporates a prime shopping mall, two Grade A office
towers, a 5-star hotel with serviced apartments managed by the Mandarin Oriental Hotel Group and a cultural
centre under development, together with approximately 700 car parking spaces, all of which are interconnected.
The shopping mall opened in September 2011 and, as at 31st December 2012, approximately 99% of the floor
area was leased and 98% of the shops were open and trading. Approximately 70% of the mall is tenanted by
retailers selling international brand names, with a number of brands making their debuts in Guangzhou. Sales of
luxury brands were encouraging in 2012 while some of the mass market brands which are new to Guangzhou
gained momentum. Tenants have committed to take (or have agreed terms in relation to) approximately 79% of
the floor area of the two office towers. HSBC, which is the largest tenant, occupies 29 floors, representing
approximately 47% of the total office floor area. The remaining vacant area is located in the high zone of office
tower 1, which is expected to command the best terms among all the office floors.
Retail sales are expected to increase in 2013. People are becoming more aware of TaiKoo Hui, the mix of tenants
is improving, more tenants are moving in and Mandarin Oriental, Guangzhou was opened in January 2013.
Swire Properties has a 97% stake in TaiKoo Hui, which is a joint venture with Guangzhou Da Yang Properties
Investment Limited (under the Guangzhou Daily Group). As at 31st December 2012, the development (excluding
the hotel) was valued at HK$12,983 million. Of this amount, Swire Properties’ 97% attributable interest
represented HK$12,594 million.
Guangzhou Market Outlook
TaiKoo Hui has established its position in the retail market and has attracted strong demand from international
brands. Total retail sales in Guangzhou grew steadily in 2012. This trend is expected to continue in 2013. New
retail malls were opened in Baiyun District and Zhujiang New Town in 2012.
The supply of office space increased significantly following completion of new office towers in Zhujiang New
Town. This has added to the already large existing stock of office space. The absorption rate in Guangzhou is low
and rental levels are under pressure. This is expected to continue in 2013.
2012 FINAL RESULTS
18
INDIGO, Beijing
INDIGO, Beijing
Gross Floor Area (sq.ft.)
(100% Basis)
Occupancy
(as at 31st Dec 2012)
Attributable
Interest
Retail 939,493 84% 50%
Office 595,464 95% 50%
Hotel (1) 358,269 N/A 50%
Total 1,893,226 50%
(1) The hotel is accounted for under property, plant and equipment in the accounts and was opened in September 2012.
INDIGO is a retail-led mixed-use development in the Jiang Tai area of Chaoyang district in Beijing. It comprises
an upmarket shopping mall, a Grade A office tower (ONE INDIGO) and a 369-room lifestyle business hotel
EAST, Beijing. It has more than 1,200 car parking spaces and will be served by the Beijing Metro Line 14, which
is due to open in 2014.
The development was officially opened in September 2012. The shopping mall is 84% leased and approximately
70% of the shops are open and trading. GAP, H&M, Food Republic and Lenovo are the key tenants. The brands
available in the mall are intended to be attractive to residents of the affluent Jiuxianqiao, Lido, Wangjing and
Shunyi districts, which are close by. The office tower is 95% leased with a little over one floor remaining vacant.
Daimler Benz, Nestle and Alstom are key tenants. Patrons of EAST, Beijing come from offices in Wangjing and
from INDIGO’s own offices.
INDIGO is a 50:50 joint venture with Sino-Ocean Land Holdings Limited. As at 31st December 2012, the
development (excluding the hotel) was valued at HK$5,166 million. Of this amount, Swire Properties’ 50%
attributable interest represented HK$2,583 million.
Beijing Office Market Outlook
Demand in the Beijing office market continues to exceed supply. New supply in 2012 was the lowest in the last
decade and 2013 supply is also expected to be limited. Vacancy rates are slightly above 5%. Rental increases and
limited supply in the central business district continue to stimulate demand for office space in other areas.
2012 FINAL RESULTS
19
Investment Properties Under Development
Dazhongli Project, Shanghai
Dazhongli Project, Shanghai
Gross Floor Area (sq.ft.)
(100% Basis)
Attributable
Interest
Retail 1,081,362 50%
Office 1,844,842 50%
Hotels (1) 543,194 50%
Total 3,469,398 50%
(1) The hotels are accounted for under property, plant and equipment in the accounts.
The Dazhongli project is a large-scale retail-led mixed-use development which will comprise approximately 3.47
million square feet (excluding car parking spaces) upon completion. It occupies a prime location with significant
frontage on Nanjing West Road, one of Shanghai’s major shopping thoroughfares. It has excellent transport
connections, being adjacent to an existing metro line and two planned metro stations. The project comprises a
retail mall, two office towers and three hotels, and is expected to become a landmark development in Shanghai.
Site clearance and resettlement works have largely been completed. Foundation, excavation and basement
construction works have commenced. The development is expected to open in phases from 2016 onwards.
The Dazhongli project is a 50:50 joint venture with HKR International Limited. As at 31st December 2012, the
development (excluding the hotel) was valued at HK$13,750 million. Of this amount, Swire Properties’ 50%
attributable interest represented HK$6,875 million.
Shanghai Market Outlook
The prospects for the Shanghai commercial property market remain good. In the central business area of Puxi
demand for Grade A office space is strong, vacancy rates are low and new supply will be less than in other areas of
Shanghai. Demand for retail space in Shanghai is robust. Many new retailers are entering the market and space in
good quality new developments is quickly taken up. Dazhongli’s public transport links and prominent position in
the central business area of Puxi places it in a strong position to take advantage of these positive market trends.
2012 FINAL RESULTS
20
Daci Temple Project, Chengdu
Daci Temple Project, Chengdu
Gross Floor Area (sq.ft.)
(100% Basis)
Attributable
Interest
Retail 1,141,598 50%
Hotel (1) 163,828 50%
Serviced Apartments 82,076 50%
Office (2) 1,324,575 50%
Total 2,712,077 50%
(1) The hotel is accounted for under property, plant and equipment in the accounts.
(2) The office portion of the Daci Temple project is being developed for trading purposes.
The Daci Temple project, located in the Jinjiang District of Chengdu and near to the popular Chunxi Road
shopping district, will be accessible from an interchange station for Chengdu’s metro lines 2 and 3. Metro line 2
opened in September 2012 and line 3 is expected to open in 2015. With a site area of 761,869 square feet, the
project will form a large-scale urban development comprising a street style retail complex, a boutique hotel with
about 100 guest rooms, serviced apartments and a Grade A office tower.
Consisting of 2-3 storey retail blocks and open space with a basement connected to the metro, the retail complex is
designed to integrate harmoniously with the cultural heritage of the ancient Daci Temple and neighbouring historic
buildings.
Excavation and foundation works have commenced and the development is expected to open in phases from 2014
onwards.
The office tower is being developed for trading purposes.
The Daci Temple development is a 50:50 joint venture with Sino-Ocean Land Holdings Limited. In January 2012,
the Group entered into an arrangement with Sino-Ocean Land Limited, a wholly-owned subsidiary of Sino-Ocean
Land Holdings Limited to fund the whole of the remaining land premium (and associated taxes) payable in respect
of the Daci Temple project and certain working capital requirements. This arrangement was varied in January
2013. Please refer to Note 15 to the accounts for further details.
As at 31st December 2012, the Daci Temple development (excluding the hotel and office trading components) was
valued at HK$2,256 million. Of this amount, Swire Properties’ 50% attributable interest represented HK$1,128
million.
Chengdu Market Outlook
The Chengdu retail market grew strongly in 2012. Newly completed retail malls offered a new type of shopping to
Chengdu citizens. Demand to rent and buy office space, both from local companies and from outside Chengdu,
was also strong in 2012.
More new retail malls will be completed in the next three years. Well planned and designed malls in prime
locations are expected to be attractive to retailers, given continued strong growth in retail sales. Rentals can be
expected to remain strong for malls in central locations.
The opening of metro line 2 has improved the competitive position of Jinjiang District compared with other
business districts in Chengdu. The supply of space on major commercial streets and in the city centre is still
limited. The Fortune Global Forum is to be held in Chengdu in 2013. This should benefit the office market. The
market for renting and buying office space in major commercial streets is expected to remain active.
2012 FINAL RESULTS
21
Investment Properties – U.S.A.
Brickell CityCentre, Miami
Brickell CityCentre, Miami
Gross Floor Area (sq.ft.)
(100% Basis)
Attributable
Interest
Retail 505,000 87.5%
Office 982,000 100%
Serviced Apartments 102,000 100%
Hotel (1) 218,000 100%
Residential (2) 1,128,000 100%
Carpark / Circulation 2,494,000 100%
Total 5,429,000
(1) The hotel is accounted for under property, plant and equipment in the accounts.
(2) The residential portion of the Brickell CityCentre is being developed for trading purposes.
Brickell CityCentre is an urban mixed-use development located in the Brickell financial district of Miami, Florida
with a site area of approximately 394,000 square feet (9.1 acres). The development incorporates a multi-level
open air shopping centre with two levels of below ground parking. A light rail Metromover station is within the
site. Swire Properties owns 100% of the office, hotel and residential portions, and 87.5% of the retail portion, of
this development.
The development is scheduled in two phases. Phase I is expected to comprise a retail component, a 264-room
hotel, 87 serviced apartments, two office buildings and two residential towers. The residential towers are being
developed for sale. Subject to market conditions, Phase II will provide additional office and car parking spaces.
Construction work on Phase I commenced in 2012 with completion scheduled in the latter half of 2015.
With little existing or expected retail competition in the area of similar scale and quality, it is believed that Brickell
CityCentre will generate rental rates comparable to those at leading shopping centres in Greater Miami.
As at 31st December 2012, the Brickell CityCentre development (excluding the hotel and residential trading
components) was valued at HK$554 million.
Miami Market Outlook
The overall property market in urban Miami is expected to improve in 2013. The retail market is expected to be
strong. Although currently over-supplied, the office market is showing some signs of improvement as vacancies
continue to decline.
Valuation of Investment Properties The portfolio of investment properties was valued at 31
st December 2012 (96% by value having been valued by
DTZ Debenham Tie Leung) on the basis of open market value. The amount of this valuation, before associated
deferred tax in Mainland China, was HK$201,981 million compared to HK$187,198 million at 31st December
2011 and HK$195,041 million at 30th
June 2012.
The increase in the valuation of the investment property portfolio principally reflects higher rental income.
Under HKAS 40, hotel properties are not accounted for as investment properties but are included within property,
plant and equipment at cost less accumulated depreciation and any provision for impairment losses.
2012 FINAL RESULTS
22
Audited Financial Information
Investment Properties
Group
Completed
HK$M
Under
Development
HK$M
Total
HK$M
At 1st January 2012 174,951 12,247 187,198
Translation differences 190 - 190
Additions 394 1,812 2,206
Disposals - (2) (2)
Transfer upon completion 2,253 (2,253) -
Other net transfers from property, plant and equipment 111 5 116
Fair value gains 11,800 473 12,273
189,699 12,282 201,981
Add: Initial leasing costs 315 - 315
At 31st December 2012 190,014 12,282 202,296
At 1st January 2011 161,508 17,307 178,815
Translation differences 374 421 795
Additions 145 4,705 4,850
Change in composition of Group (18,263) - (18,263)
Transfer upon completion 11,142 (11,142) -
Other net transfers from property, plant and equipment 265 38 303
Other net transfers from property held for development 104 249 353
Fair value gains 19,676 669 20,345
174,951 12,247 187,198
Add: Initial leasing costs 290 - 290
At 31st December 2011 175,241 12,247 187,488
Geographical Analysis of Investment Properties
Group
2012
HK$M
2011
HK$M
Held in Hong Kong:
On medium-term leases (10 to 50 years) 25,350 25,151
On long-term leases (over 50 years) 152,883 140,358
178,233 165,509
Held in Mainland China:
On medium-term leases (10 to 50 years) 23,194 21,298
Held in U.S.A.:
Freehold 554 391
201,981 187,198
2012 FINAL RESULTS
23
Property Trading The trading portfolio comprises six luxury residential projects under development in Hong Kong (four on Hong
Kong Island, one in Kowloon and one on Lantau Island), two residential towers under development in Brickell
CityCentre in Miami, U.S.A., an office property under development in the Daci Temple project in Chengdu in
Mainland China, and the remaining residential units at the completed developments of AZURA and 5 Star Street
in Hong Kong and ASIA in Miami. There are also land banks in Miami and Fort Lauderdale in Florida, U.S.A.
Property Trading Portfolio
Gross Floor
Area (sq.ft.)
(100% Basis)
Actual / Expected
Construction
Completion
Date
Attributable
Interest
Completed
Hong Kong
- 5 Star Street (1) 1,331 2010 100%
- AZURA (1) 48,686 2012 87.5%
U.S.A.
- ASIA, Miami (1) 33,264 2008 100%
Under Development
Hong Kong
- ARGENTA 75,805 2013 100%
- 33 Seymour Road (Phase 1) 165,792 2014 100%
- 33 Seymour Road (Phase 2) 195,531 2016 100%
- MOUNT PARKER RESIDENCES 151,954 2013 80%
- DUNBAR PLACE 88,555 2013 50%
- Cheung Sha, South Lantau 64,412 2015 100%
Mainland China
- Daci Temple Project, Chengdu (office portion) 1,324,575 2013 50%
U.S.A.
- Brickell CityCentre, Miami, Florida (residential portion) 1,128,000 2015 100%
Held for Development
U.S.A.
- Fort Lauderdale, Florida 787,414 N/A 75%
- South Brickell Key, Miami, Florida 421,800 N/A 100%
- Brickell CityCentre, North Squared, Miami, Florida 500,000 N/A 100%
Total 4,987,119
(1) Remaining unsold units as at 31st December 2012.
2012 FINAL RESULTS
24
The following table shows the expected timing of completion of our residential projects in Hong Kong.
Expected Attributable Residential GFA Completions in Hong Kong in 2013-2016
GFA (sq ft.) 2013 2014 2015
2016 &
Onwards
MOUNT PARKER RESIDENCES 121,563 - - -
ARGENTA 75,805 - - -
DUNBAR PLACE 44,278 - - -
33 Seymour Road (Phase 1) - 165,792 - -
33 Seymour Road (Phase 2) - - - 195,531
Cheung Sha, South Lantau - - 64,412 -
Total 241,646 165,792 64,412 195,531
Audited Financial Information
Properties Held For Development and For Sale
Group
2012
HK$M
2011
HK$M
Properties held for development
Freehold land 188 124
Properties for sale
Completed properties
- development costs 401 270
- freehold land 4 7
- leasehold land 145 4
Properties under development
- development costs 1,762 1,329
- freehold land 175 175
- leasehold land 4,461 5,063
6,948 6,848
2012 FINAL RESULTS
25
Hong Kong
Residential developments in Mid-Levels West, Hong Kong
Swire Properties owns four sites in Mid-Levels West, a residential district on Hong Kong Island.
(a) AZURA, 2A Seymour Road
Swire Properties holds a 87.5% interest in this development comprising a 50-storey tower of 126 units and 45 car
parking spaces with a total GFA of 206,306 square feet. The development was completed in the second half of
2012. As at 13th
March 2013, 111 units had been sold. Completion of the sales of 98 of these units took place in
2012. Completion of the sales of a further three units have taken place up to 13th
March 2013. Completion of the
sales of ten units will take place later in 2013. The development is managed by Swire Properties.
(b) ARGENTA, 63 Seymour Road
ARGENTA is wholly-owned by Swire Properties. The superstructure works are in progress. The development is
expected to be completed and available for hand over to the purchasers in 2013, and will consist of a 37-storey
tower of 30 whole-floor residential units and 28 car parking spaces with an aggregate GFA of 75,805 square feet.
Six units (each together with a car parking space) have been pre-sold.
(c) 33 Seymour Road (Phases 1 and 2)
33 Seymour Road is wholly-owned by the Group. Superstructure works at Phase 1 of the development are in
progress and the development of Phase 1 is expected to be completed in 2014 and available for hand over to
purchasers in 2015. It will consist of a 48-storey tower of 127 residential units with an aggregate GFA of 165,792
square feet upon completion.
Foundation works at Phase 2 of the development (formerly 92-102 Caine Road) are in progress and the
development is expected to be completed in 2016 and available for hand over to purchasers in 2017. The
development consists of a 50-storey tower of 197 residential units and 43 car parking spaces with an aggregate
GFA of 195,531 square feet.
Swire Properties plans, subject to receipt of the necessary approvals, to upgrade certain pedestrian walkways,
widen a number of pavements and build a pedestrian staircase next to Phase 2, in order to improve pedestrian flow
between Castle Road and Caine Road.
MOUNT PARKER RESIDENCES, 1 Sai Wan Terrace (formerly 1 Sai Wan Terrace)
Swire Properties has an 80% interest in MOUNT PARKER RESIDENCES, a residential development in Quarry
Bay, Hong Kong. The development is expected to be completed in the second half of 2013 and available for hand
over to purchasers in 2014. It will comprise 92 residential units and 69 basement car parking spaces, with an
aggregate GFA of 151,954 square feet upon completion.
DUNBAR PLACE, 23 Dunbar Road (formerly 148 Argyle Street)
DUNBAR PLACE is a residential development in Ho Man Tin, Kowloon. Swire Properties has a 50% interest in
the development. The development is expected to be completed in 2013 and available for hand over to purchasers
in 2014. It will have an aggregate GFA of approximately 88,555 square feet upon completion and will consist of a
23-storey tower with 53 residential units and 57 car parking spaces.
2012 FINAL RESULTS
26
Cheung Sha, South Lantau
Two adjacent residential sites at the junction of Tung Chung Road and South Lantau Road in Cheung Sha, Lantau
Island were acquired in 2011 and are wholly-owned by the Group. The sites will be developed into detached
houses with an aggregate GFA of 64,412 square feet. The development is expected to be completed and available
for hand over to purchasers in 2015.
Hong Kong Residential Market Outlook
The effect of substantial increases and other changes in Hong Kong stamp duty on demand for luxury residential
properties is uncertain.
U.S.A.
ASIA, located on the northern edge of Brickell Key in downtown Miami, is a luxury high-rise residential
condominium with 123 units. The average size of these units is approximately 2,300 square feet. Sales of 16 units
were completed in 2012. 110 units have been sold and a further three units have been leased as at 13th
March
2013.
The residential portion of Brickell CityCentre is being developed for trading purposes and will comprise 820 units
in two high-rise condominium towers. Completion of this development is expected in 2015.
The residential market for properties in urban Miami is expected to continue to improve in 2013 with higher sales
prices and rental rates. The excess condominium supply is now largely absorbed and construction is underway at
several new condominium projects.
Leasing and Management Business Swire Properties was responsible for the redevelopment and is responsible for the leasing and management of
OPUS HONG KONG, a property owned by Swire Pacific at 53 Stubbs Road. The property is a prime residential
development consisting of a 12-storey residential building with ten whole-floor units and two double-level garden
apartments designed by Pritzker Prize winning architect Frank Gehry.
Estate Management
Through subsidiaries, Swire Properties undertakes the management of 15 estates which it has developed, including
AZURA, Robinson Place, The Orchards, and Taikoo Shing. The services provided include concierge services and
assistance to the residents, cleaning and maintenance of common areas, and renovation of buildings. Swire
Properties places great emphasis on its relationships with occupants of the existing estates which it manages and
intends to provide high quality estate management at the estates which it is developing.
2012 FINAL RESULTS
27
Hotels
Managed Hotels
Overview
Swire Hotels owns and manages hotels in Hong Kong, Mainland China and the U.K., comprising the “House
Collection”, “EAST”, and “Chapter Hotels”. The House Collection, presently comprising The Upper House in
Hong Kong and The Opposite House in Beijing, is a group of small and distinctive hotels in Asia providing highly
personalised experiences for guests. EAST hotels are lifestyle business hotels. Chapter Hotels are local hotels in
regional towns and cities in the U.K..
Hotels Portfolio (Managed by the Group)
No. of rooms
(100% Basis)
Attributable
Interest
Completed
Hong Kong
- The Upper House 117 100%
- EAST, Hong Kong 345 100%
- Headland Hotel (1) 501 0%
Mainland China
- The Opposite House 99 100%
- EAST, Beijing (2) 369 50%
U.K.
- The Montpellier Chapter, Cheltenham 61 100%
- Avon Gorge Hotel, Bristol 75 100%
- The Magdalen Chapter, Exeter (3) 59 100%
- Hotel Seattle, Brighton 71 100%
Under Development
Mainland China
- Dazhongli Project (Hotel), Shanghai 100 50%
- Daci Temple Project (Hotel), Chengdu (4) 142 50%
U.S.A.
- EAST, Miami 351 100%
Total 2,290
(1) Headland Hotel is owned by Airline Hotel Limited, a wholly-owned subsidiary of Cathay Pacific Airways Limited.
(2) EAST, Beijing opened in September 2012.
(3) Refurbishment of the hotel in Exeter was completed in 2012.
(4) Including serviced apartments in the same building.
The Upper House
The Upper House, a 117-room luxury hotel at Pacific Place, continued to be recognised for its customer service
and achieved strong market penetration and revenue growth in 2012, with revenue per available room increasing
by 9% from 2011. In 2012, it received the “Best Overseas Business Hotels 2012” award from Condé Nast
Traveller, an award from Fodor’s 100 Hotel Awards 2012, a “Certificate of Excellence for The Year of 2012”
award from TripAdvisor and a “Hong Kong & Macau Best Restaurants” award from Asia Tatler Dining.
2012 FINAL RESULTS
28
EAST, Hong Kong
EAST, Hong Kong, a 345-room hotel at Island East, has established a loyal following from office tenants in
Cityplaza and TaiKoo Place. Occupancy and average room rates were strong in 2012, with revenue per available
room increasing by 5% from 2011. In 2012, it received the “2012 Travelers' Choice Award” and a “Certificate of
Excellence for The Year of 2012” award from TripAdvisor, a “Top 10 Hong Kong Boutique Hotels” award from
the Guardian and a “50 Stunning Rooftop Bars and Restaurants” award from CNNGo.
The Opposite House
Revenue per available room increased by 3% in 2012 at The Opposite House, a 99-room luxury hotel at Sanlitun
Village, Beijing. Its accommodation, restaurant and bar businesses improved and it maintained a leading market
position. The hotel received the Condé Nast Traveller's “Gold List 2012: Best for Food” award and Miele
Guide’s “One of Asia's Finest Restaurants 2011/2012” award during the year.
EAST, Beijing
EAST, Beijing is a 369-room business lifestyle hotel at the INDIGO development in Beijing, in which Swire
Properties holds a 50% interest. The hotel has been gradually building a loyal corporate clientele since its opening
in September 2012.
U.K. Hotels
Swire Properties owns four hotels in the United Kingdom, one each in Cheltenham, Bristol, Brighton and Exeter.
The Magdalen Chapter Hotel in Exeter re-opened in June 2012 following a major refurbishment. Occupancy and
room rates were satisfactory during 2012 although trading conditions were challenging in the U.K. market.
Hotels Market Outlook
The hotels in Hong Kong are expected to continue to benefit from growth in the number of visitors from Mainland
China and are well positioned in both the business and tourism sectors.
In Mainland China, The Opposite House is expected to see further growth in its accommodation, restaurant and
bar businesses. EAST, Beijing will make its first full year contribution in 2013.
The trading environment in the U.K. remains challenging.
2012 FINAL RESULTS
29
NNoonn--mmaannaaggeedd HHootteellss
Swire Properties has ownership interests in (but does not manage) hotels with 3,065 rooms in aggregate. The
Mandarin Oriental in TaiKoo Hui, 97% owned by Swire Properties and which opened in January 2013, has 263
rooms and 24 serviced apartments.
. Hotels Portfolio (Not managed by the Group)
No. of rooms
(100% Basis)
Attributable
Interest
Completed
Hong Kong
- Island Shangri-La Hong Kong 565 20%
- JW Marriott Hotel Hong Kong 602 20%
- Conrad Hong Kong 513 20%
- Novotel Citygate Hong Kong 440 20%
U.S.A.
- Mandarin Oriental, Miami 326 75%
Mainland China
- Mandarin Oriental, Guangzhou (1) 287 97%
Under Development
Mainland China
- Dazhongli Project (Hotels), Shanghai 332 50%
Total 3,065
(1) Including 24 serviced apartments in the same building. The development was officially opened in January 2013.
The non-managed hotels in Hong Kong performed strongly during the year. Trading conditions also improved at
the Mandarin Oriental, Miami in 2012.
2012 FINAL RESULTS
30
Capital Commitments
Capital Expenditure and Commitments for Investment Properties and Hotels Capital expenditure in 2012 on Hong Kong investment properties and hotels, including completed projects,
amounted to HK$1,828 million (2011: HK$3,104 million). Outstanding capital commitments at 31st December
2012 were HK$5,405 million (31st December 2011: HK$6,740 million).
Capital expenditure in 2012 on Mainland China investment properties and hotels, including the Group's share of
the capital expenditure of jointly controlled companies, amounted to HK$1,776 million (2011: HK$3,180 million).
Outstanding capital commitments at 31st December 2012 were HK$7,546 million (2011: HK$8,430 million),
including the Group’s share of the capital commitments of jointly controlled companies of HK$6,620 million
(2011: HK$7,101 million). The Group is committed to funding HK$818 million (31st December 2011: HK$1,828
million) of the capital commitments of jointly controlled companies in Mainland China.
Capital expenditure in 2012 on the investment properties and hotels in the U.S.A., Singapore and the U.K.
amounted to HK$239 million (2011: HK$102 million). Outstanding capital commitments at 31st December 2012
were HK$2,963 million (2011: HK2,510 million).
Profile of Capital Commitments for Investment Properties and Hotels
Expenditure Forecast year of expenditure Commitments*
2012
HK$M
2013
HK$M
2014
HK$M
2015
HK$M
2016
& beyond
HK$M
At 31st Dec 2012
HK$M
Hong Kong 1,828 879 548 606 3,372 5,405
Mainland China 1,776 3,680 2,361 831 674 7,546
U.S.A. and others 239 1,360 1,603 - - 2,963
Total 3,843 5,919 4,512 1,437 4,046 15,914
* The capital commitments represents the Group’s capital commitments of HK$9,294 million plus the Group’s share of the capital
commitments of jointly controlled companies of HK$6,620 million. The Group is committed to funding HK$818 million of the capital
commitments of jointly controlled companies.
2012 FINAL RESULTS
31
Financing
Sources of Finance
At 31
st December 2012, committed loan facilities and debt securities amounted to HK$36,777 million, of which
HK$7,338 million (20.0%) remained undrawn. In addition, the Group had undrawn uncommitted facilities
totalling HK$1,408 million. Sources of funds at 31st December 2012 comprised:
At 31
st December 2012, 61% of the Group’s gross borrowings were on fixed rate basis and 39% were on a floating
rate basis (2011:66% and 34% respectively).
The Group had bank balances and short-term deposits of HK$1,940 million at 31st December 2012, compared to
HK$1,180 million at 31st December 2011.
Maturity Profile and Refinancing
Bank loans and other borrowings are repayable on various dates up to 2022 (2011: up to 2018). The weighted
average term and cost of the Group’s debt are:
2012 2011
Weighted average term of debt 3.6 years
2.9 years
Weighted average term of debt (excluding perpetuals) 3.5 years
2.8 years
Weighted average cost of debt 4.8%
4.6%
Weighted average cost of debt (excluding perpetuals) 4.5% 4.4%
Undrawn
Undrawn
expiring
expiring
within
after
Available
Drawn
one year
one year
HK$M
HK$M
HK$M
HK$M
Facilities from third parties
Revolving credit and short-term loans 3,960 1,238 337 2,385
Term loans 9,677
8,261
-
1,416
Bonds 4,676
4,676
-
-
Facilities from Swire Finance
Revolving credit 4,000
800
1,500
1,700
Bonds 12,135
12,135
-
-
Perpetual capital securities 2,329
2,329
-
-
Total committed facilities 36,777
29,439
1,837
5,501
Uncommitted facilities
Bank loans, overdrafts and other loans 2,952
1,544
1,266
142
Total 39,729
30,983
3,103
5,643
2012 FINAL RESULTS
32
The maturity profile of the Group's available committed facilities is set out below:
Maturity Profile
(HK$M) Total 2013 2014 2015 2016 2017 2018 2019 2022
Facilities from third parties
Revolving credit and term
loans 13,637 1,215 6,672 2,750 2,000 1,000 - - -
Bonds 4,676 - - - - 500 - 300 3,876
Facilities from Swire Finance
Revolving credit 4,000 1,500 - 2,500 - - - - -
Bonds 12,135 2,300 - - 4,658 - 5,177 - -
Perpetual capital securities 2,329 - - - - 2,329 - - -
Total 36,777 5,015 6,672 5,250 6,658 3,829 5,177 300 3,876
Note: The perpetual capital securities have no fixed maturity date. In the above table their maturity is presented as their first call date, 13th
May 2017.
The table below sets forth the maturity profile of the Group’s borrowings:
2012
2011
HK$M
HK$M
Bank and other borrowings:
Within 1 year 2,365
1,687
1 - 2 years 6,603
93
2 - 5 years 2,502
5,726
After 5 years 4,151
-
Borrowings from Swire Finance:
Within 1 year 2,299
6,943
1 - 2 years -
2,296
2 - 5 years 7,773
4,638
After 5 years 5,168
7,497
Total 30,861
28,880
Amount due within one year included under current liabilities (4,664)
(8,630)
Amount due after one year included under non-current liabilities 26,197
20,250
Upon maturity of the financing arrangements provided by Swire Finance Limited, the Group will obtain new
funding (as necessary) on a stand-alone basis without recourse to Swire Pacific.
2012 FINAL RESULTS
33
Currency Profile An analysis of the carrying amounts of gross borrowings by currency (after cross-currency swaps) is shown below:
2012
2011
HK$M
HK$M
Currency
Hong Kong dollar 21,060 68%
20,598 71%
United States dollar 1,524 5%
1,182 4%
Renminbi 8,214 27%
7,040 25%
Others 63 -
60 -
Total 30,861 100%
28,880 100%
Gearing Ratio and Interest Cover The following table illustrates the gearing ratio, interest cover and cash interest cover for each of the last two years:
2012
2011
Gearing ratio*
Per accounts 15.0% 15.7%
Underlying 14.5% 15.3%
Interest cover – times *
Per accounts 15.7 18.2
Underlying 7.9 12.0
Cash interest cover – times *
Per accounts 12.3 14.5
Underlying 6.0 9.2
* Refer to Glossary on page 50 for definition
2012 FINAL RESULTS
34
FINANCIAL STATEMENTS
Consolidated Income Statement
For the year ended 31st December 2012
2012
2011
Note HK$M
HK$M
Turnover 2 14,052
9,581
Cost of sales 3 (3,770)
(2,334)
Gross profit
10,282
7,247
Administrative expenses
(873)
(1,029)
Other operating expenses
(214)
(130)
Profit on sale of interest in Festival Walk
-
595
Other net gains/ (losses) 4 40
(83)
Change in fair value of investment properties
12,273
20,345
Operating profit
21,508
26,945
Finance charges
(1,483) (1,504)
Finance income
116 27
Net finance charges 6 (1,367)
(1,477)
Share of profits less losses of jointly controlled companies
660
851
Share of profits less losses of associated companies
161
156
Profit before taxation
20,962
26,475
Taxation 7 (1,863)
(1,296)
Profit for the year
19,099
25,179
Profit for the year attributable to:
The Company's shareholders 18,763
25,126
Non-controlling interests 336
53
19,099
25,179
Dividends
Special interim - paid
-
10,014
First interim - declared on 15th March 2012 - 1,053
First interim - paid
1,287
-
Second interim - declared on 14th March 2013
2,223
-
8 3,510
11,067
HK$
HK$
Earnings per share for profit attributable to
the Company's shareholders (basic and diluted) 9 3.21
4.40
2012 FINAL RESULTS
35
Consolidated Statement of Comprehensive Income
For the year ended 31st December 2012
2012
2011
HK$M
HK$M
Profit for the year
19,099
25,179
Other comprehensive income
Cash flow hedges
- fair value losses recognised during the year (84) -
- transferred to net finance charges 1 -
- deferred tax 14 -
Revaluation of properties previously occupied by the Group
- gain recognised during the year
36
186
- deferred tax
(8)
-
Share of other comprehensive income of jointly controlled
and associated companies
30
276
Net translation differences on foreign operations
160
517
Other comprehensive income for the year, net of tax
149
979
Total comprehensive income for the year
19,248
26,158
Total comprehensive income attributable to:
The Company's shareholders
18,911
26,105
Non-controlling interests
337
53
19,248
26,158
Note: Other than cash flow hedges and revaluation of properties previously occupied by the Group as disclosed above, items shown within other
comprehensive income have no tax effect.
2012 FINAL RESULTS
36
Consolidated Statement of Financial Position
at 31st December 2012
2012
2011
Note HK$M
HK$M
ASSETS AND LIABILITIES
Non-current assets
Property, plant and equipment 6,837
6,615
Investment properties 202,296
187,488
Leasehold land and land use rights -
3
Intangible assets 8
7
Properties held for development 188
124
Jointly controlled companies 14,878
13,000
Associated companies 721
639
Available-for-sale assets 9
9
Deferred tax assets 68
57
Retirement benefit assets 117
108
225,122
208,050
Current assets
Properties under development and for sale 6,948 6,848
Stocks and work in progress 69
69
Trade and other receivables 10 2,930
1,945
Amount due from immediate holding company - Swire Pacific Limited 51
142
Cash and cash equivalents 1,940 1,180
11,938 10,184
Current liabilities
Trade and other payables 11 7,155
8,088
Taxation payable
710
445
Bank overdrafts and short-term loans 1,057
1,023
Long-term loans due within one year 1,308
664
Loans due to a fellow subsidiary company - Swire Finance Limited 2,299 6,943
12,529 17,163
Net current liabilities
(591) (6,979)
Total assets less current liabilities
224,531
201,071
Non-current liabilities
Long-term loans and bonds 13,256 5,819
Loans due to a fellow subsidiary company - Swire Finance Limited 12,941 14,431
Derivative financial instruments 83 -
Deferred tax liabilities 4,995 4,246
31,275
24,496
NET ASSETS
193,256
176,575
EQUITY
Share capital 12 5,850
5,850
Reserves 13 186,764
170,193
Equity attributable to the Company's shareholders
192,614
176,043
Non-controlling interests 642
532
TOTAL EQUITY
193,256
176,575
2012 FINAL RESULTS
37
Consolidated Statement of Cash Flows
For the year ended 31st December 2012
2012
2011
HK$M HK$M
Operating activities
Cash generated from operations 8,116 7,396
Interest paid
(1,576)
(1,664)
Interest received
27
38
Profits tax paid
(875) (485)
5,692
5,285
Dividends received from jointly controlled and associated companies
and available-for-sale assets
153 415
Net cash from operating activities
5,845 5,700
Investing activities
Purchase of property, plant and equipment (488) (548)
Additions to investment properties (2,516) (4,717)
Purchase of intangible assets
(5) (5)
Proceeds from disposals of property, plant and equipment
16 1
Proceeds from disposal of Festival Walk
- 18,305
Purchase of shares in jointly controlled companies
(5) -
Loans to jointly controlled companies
(1,387) (2,294)
Repayment of loans by jointly controlled companies
129 1,169
Initial leasing costs incurred
(115) (193)
Net cash (used in) / generated from investing activities
(4,371) 11,718
Net cash inflow before financing
1,474 17,418
Financing activities
Bank loans drawn and refinancing
4,029 2,206
Bonds Issued 4,676 -
Repayment of bank loans
(681) (628)
8,024 1,578
Proceeds from issuance of ordinary shares - 4,500
Capital contribution from non-controlling interests - 12
Decrease in loans due to a fellow subsidiary company- Swire Finance
Limited (6,173) (10,875)
Dividends paid to the Company's shareholders (2,340) (12,439)
Dividends paid to non-controlling interests (227) (12)
Net cash used in financing activities (716) (17,236)
Increase in cash and cash equivalents 758 182
Cash and cash equivalents at 1st January
1,179 1,023
Currency adjustment
(1) (26)
Cash and cash equivalents at 31st December
1,936 1,179
Represented by:
Bank balances and short-term deposits maturing within three months 1,940
1,180
Bank overdrafts
(4)
(1)
1,936
1,179
2012 FINAL RESULTS
38
1. Segment information
(a) Information about reportable segments
Analysis of Consolidated Income Statement
External
turnover
Inter-
segment
turnover
Operating
profit/(loss)
after
depreciation
and
amortisation
Finance
charges
Finance
income
Share of
profits less
losses of
jointly
controlled
companies
Share of
profits less
losses of
associated
companies
Profit
/(loss)
before
taxation
Tax
charge
Profit
/(loss)
for the
year
Profit/(loss)
attributable to
the Company's
shareholders
Depreciation and
amortisation
charged to operating
profit
HK$M
HK$M
HK$M
HK$M
HK$M
HK$M
HK$M
HK$M
HK$M
HK$M
HK$M
HK$M
Year ended 31st December 2012
Property investment 9,123 8 6,879 (1,443) 113 146 - 5,695 (771) 4,924 4,906 (171)
Property trading 4,147 - 2,395 - 3 (14) - 2,384 (422) 1,962 1,659 (20)
Hotels 782 2 (39) (40) - (40) 160 41 (29) 12 14 (123)
Change in fair value of
investment properties - - 12,273 - - 568 1 12,842 (641) 12,201 12,184 -
Inter-segment elimination - (10) - - - - - - - - - -
14,052 - 21,508 (1,483) 116 660 161 20,962 (1,863) 19,099 18,763 (314)
Year ended 31st December 2011
Property investment
8,651
8
6,743
(1,464)
24
123
-
5,426
(760)
4,666
4,656
(163)
Property trading
213
-
(50)
(5)
3
59
-
7
(3)
4
7
(9)
Hotels
717
2
(93)
(35)
-
(7)
155
20
(53)
(33)
(33)
(120)
Change in fair value of
investment properties
-
-
20,345
-
-
676
1
21,022
(480)
20,542
20,496
-
Inter-segment elimination
-
(10)
-
-
-
-
-
-
-
-
-
-
9,581
-
26,945
(1,504)
27
851
156
26,475
(1,296)
25,179
25,126
(292)
2012 FINAL RESULTS
39
1. Segment information (continued)
(a) Information about reportable segments (continued)
Analysis of total assets of the Group
Jointly
Additions to
Segment
controlled
Associated
Bank
Total
non-current
assets
companies
companies
deposits
assets
assets (note)
HK$M
HK$M
HK$M
HK$M
HK$M
HK$M
At 31st December 2012
Property investment 206,717 12,737 55 1,529 221,038 2,396
Property trading and
development 7,272 1,063 - 345 8,680 66
Hotels 5,532 1,078 666 66 7,342 414
219,521 14,878 721 1,940 237,060 2,876
At 31st December 2011
Property investment
190,771
11,303
55
1,003
203,132
5,117
Property trading and
development
7,479
842
-
76
8,397
2
Hotels
5,165
855
584
101
6,705
586
203,415
13,000
639
1,180
218,234
5,705
Note: In this analysis, additions to non-current assets during the year exclude financial instruments (which include jointly controlled and associated
companies and available-for-sale assets), deferred tax assets and retirement benefit assets.
Analysis of total liabilities and non-controlling interests of the Group
Current and
Non-
Segment
deferred tax
Gross
Total
controlling
liabilities
liabilities
borrowings
liabilities
interests
HK$M
HK$M
HK$M
HK$M
HK$M
At 31st December 2012
Property investment 6,516 5,236 25,482 37,234 557
Property trading and development 557 469 4,688 5,714 85
Hotels 165 - 691 856 -
7,238 5,705 30,861 43,804 642
At 31st December 2011
Property investment
6,184
4,672
22,852
33,708
532
Property trading and development
1,721
19
5,409
7,149
-
Hotels
183
-
619
802
-
8,088
4,691
28,880
41,659
532
2012 FINAL RESULTS
40
1. Segment information (continued)
(a) Information about reportable segments (continued)
The Swire Properties Group is organised on a divisional basis: Property investment, Property trading and
development, and Hotels. The reportable segments within each of the three divisions are classified according
to the nature of the business.
(b) Information about geographical areas
The activities of the Group are principally based in Hong Kong, Mainland China, the United States of
America and the United Kingdom.
An analysis of turnover and non-current assets of the Group by principal markets is outlined below:
Turnover
Non-current assets*
2012 2011
2012 2011
HK$M
HK$M
HK$M
HK$M
Hong Kong 12,217
8,392
182,390
169,779
Mainland China 1,516
932
25,544
23,378
United States of America 187
146
829
569
United Kingdom 132
111
566
511
14,052
9,581 209,329
194,237
* In this analysis, the total of non-current assets excludes financial instruments (which include jointly controlled and associated
companies and available-for-sale assets), deferred tax assets and retirement benefit assets.
2. Turnover
Turnover represents sales by the Company and its subsidiary companies to external customers and comprises
revenue from:
2012
2011
HK$M
HK$M
Gross rental income from investment properties 9,015
8,557
Property trading 4,147
213
Hotels 782
717
Rendering of services 108
94
14,052
9,581
2012 FINAL RESULTS
41
3. Cost of sales
2012
2011
HK$M
HK$M
Direct rental outgoings in respect of investment properties that
- generated rental income (1,490)
(1,471)
- did not generate rental income (102)
(46)
(1,592)
(1,517)
Property trading (1,435)
(199)
Hotels (691)
(584)
Rendering of services (52)
(34)
(3,770)
(2,334)
4. Other net gains / (losses)
2012
2011
HK$M
HK$M
Profit on sale of investment properties 12 -
Loss on sale of property, plant and equipment (1) -
Impairment reversals / (losses) on hotel and trading properties 4 (100)
Net foreign exchange gains / (losses) 4 (6)
Provision written back - 19
Recognition / (reversal) of income on forfeited deposits on trading properties 9 (16)
Others 12
20
40
(83)
2012 FINAL RESULTS
42
5. Expenses by type
Expenses included in cost of sales, administrative and other operating expenses are analysed as
follows:
2012
2011
HK$M
HK$M
Depreciation of property, plant and equipment 222
224
Amortisation of
- intangible assets 3
3
- initial leasing costs on investment properties 89
65
Staff costs 1,295
1,137
6. Net finance charges
2012
2011
HK$M
HK$M
Interest charged on:
Bank loans and overdrafts (527) (418)
Bonds:
Wholly repayable within five years (4) -
Not wholly repayable within five years (95) -
Loan from a fellow subsidiary company (925) (1,096)
Loans from jointly controlled companies (4) (2)
Fair value losses on derivative instruments:
Cash flow hedges - transferred from other comprehensive income (1) -
Other financing costs (134) (104)
Loss on the movement in the fair value of the liability in respect of a put
option in favour of the owner of a non-controlling interest in a subsidiary (175) (259)
Capitalised on:
Investment properties 95 197
Properties under development and for sale 244 155
Hotels 43 23
(1,483) (1,504)
Interest income on:
Short-term deposits and bank balances 11 12
Loan to a fellow subsidiary company - 2
Loans to jointly controlled companies 13 9
Others 92 4
116 27
Net finance charges (1,367) (1,477)
2012 FINAL RESULTS
43
7. Taxation
2012
2011
HK$M
HK$M
HK$M
HK$M
Current taxation:
Hong Kong profits tax (1,124)
(628)
Overseas taxation (11)
(12)
(Under)/ over-provisions in prior years (4)
20
(1,139)
(620)
Deferred taxation:
Changes in fair value of investment properties (252)
(386)
Origination and reversal of temporary differences (472)
(290)
(724)
(676)
(1,863)
(1,296)
Hong Kong profits tax is calculated at 16.5% (2011: 16.5%) on the estimated assessable profits for the year.
Overseas tax is calculated at tax rates applicable in jurisdictions in which the Group is assessable for tax.
8. Dividends
2012
2011
HK$M
HK$M
First special interim dividend paid on 30th September 2011 -
4,514
Second special interim dividend paid on 8th November 2011 -
5,500
First interim dividend (in lieu of final dividend) declared on 15th March 2012 of
HK¢18 per share -
1,053
First interim dividend of HK¢22 per share paid on 4th October 2012 1,287
-
Second interim dividend (in lieu of final dividend) declared on 14th March 2013 of
HK¢38 per share
2,223
-
3,510
11,067
The second interim dividend is not accounted for in 2012 because it had not been declared at the year end date.
The actual amount will be accounted for as an appropriation of the revenue reserve in the year ending 31st
December 2013.
The register of members will be closed on Friday, 5th
April 2013, during which day no transfer of shares will be
effected. In order to qualify for entitlement to the second interim dividend, all transfer forms accompanied by the
relevant share certificates must be lodged with the Company’s share registrars, Computershare Hong Kong
Investor Services Limited, 17th
Floor, Hopewell Centre, 183 Queen’s Road East, Hong Kong, for registration not
later than 4:30 p.m. on Wednesday, 3rd
April 2013.
To facilitate the processing of proxy voting for the Annual General Meeting to be held on 7th
May 2013, the
register of members will be closed from 2nd
May 2013 to 7th
May 2013, both days inclusive, during which period
no transfer of shares will be effected. In order to be entitled to attend and vote at the annual general meeting, all
transfer forms accompanied by the relevant share certificates must be lodged with the Company’s share registrars,
Computershare Hong Kong Investor Services Limited, 17th
Floor, Hopewell Centre, 183 Queen’s Road East,
Hong Kong, for registration not later than 4:30 p.m. on Tuesday, 30th
April 2013.
2012 FINAL RESULTS
44
9. Earnings per share (basic and diluted)
Earnings per share are calculated by dividing the profit attributable to the Company's shareholders of HK$18,763
million (2011: HK$25,126 million) by the weighted average number of 5,850,000,000 ordinary shares in issue
during 2012 (2011: 5,704,027,397 ordinary shares).
10.Trade and other receivables
2012
2011
HK$M
HK$M
Trade debtors
278
284
Prepayments and accrued income
186
125
Other receivables
2,466
1,536
2,930
1,945
The analysis of the age of trade debtors at year-end (based on the invoice date) is as follows:
2012
2011
HK$M
HK$M
Under three months
269
272
Between three and six months
6
5
Over six months
3
7
278
284
The Group does not grant credit terms to its customers, except to corporate customers in the hotel business where
commercial trade credit terms are given. The Group also holds rental deposits as security against trade debtors.
2012 FINAL RESULTS
45
11. Trade and other payables
2012
2011
HK$M
HK$M
Trade creditors
1,064
1,788
Amounts due to intermediate holding company
161
79
Amounts due to a fellow subsidiary company
79
102
Amounts due to an associated company 41 -
Amounts due to a jointly controlled company
2
2
Interest-bearing advances from a jointly controlled
company at 1.58% (2011: 1.55%)
350
225
Advances from non-controlling interests 240
234
Rental deposits from tenants
1,953
1,780
Put option over non-controlling interest in Sanlitun
Village
1,112
937
Accrued capital expenditure
763
1,215
Other payables
1,390
1,726
7,155
8,088
The analysis of the age of trade creditors at year-end is as follows:
2012
2011
HK$M
HK$M
Under three months
970
1,529
Between three and six months
94
259
1,064
1,788
2012 FINAL RESULTS
46
12. Share capital
2012
2011
HK$M
HK$M
Authorised:
At 31st December 2012 and 2011
30,000,000,000 ordinary shares of HK$1 each 30,000
30,000
Issued and fully paid:
At 31st December 2012 and 2011
5,850,000,000 ordinary shares of HK$1 each 5,850
5,850
On 30th
November 2011, the Company issued 160,000,000 shares to Swire Pacific Limited for a total cash
consideration of HK$4,500 million (being HK$28.125 per share). Following this share issue, the Company has a
total of 5,850,000,000 fully paid shares in issue.
There was no purchase, sale or redemption by the Company of its shares during the year ended 31st December
2012.
2012 FINAL RESULTS
47
13. Reserves
Share
Merger
Property
Cash flow
Revenue
premium
account
revaluation
hedge
Translation
reserve
account
reserve
reserve
reserve
reserve
Total
HK$M
HK$M
HK$M
HK$M
HK$M
HK$M
HK$M
Group
At 1st January 2011 150,317 259 (1,108) 1,448 - 1,271 152,187
Profit for the year 25,126
-
-
-
-
-
25,126
Other comprehensive income
Revaluation of properties previously occupied by the Group
- gain recognised during the year - - - 186 - - 186
Share of other comprehensive income of jointly
controlled and associated companies - - - - - 276 276
Net translation differences on foreign operations - - - - - 517 517
Total comprehensive income for the year 25,126
-
-
186
-
793
26,105
Issuance of new ordinary shares - 4,340 - - - - 4,340
2010 final dividend (2,425) - - - - - (2,425)
2011 special interim dividends (note 8) (10,014) - - - - - (10,014)
At 31st December 2011 163,004 4,599 (1,108) 1,634 - 2,064 170,193
At 1st January 2012 163,004 4,599 (1,108) 1,634 - 2,064 170,193
Profit for the year 18,763 - - - - - 18,763
Other comprehensive income
Revaluation of properties previously occupied by the Group
- gain recognised during the year - - - 36 - - 36
- deferred tax - - - (8) - - (8)
Cash flow hedges
- fair value loss recognised during the year
- - - - (84) - (84)
- transferred to net finance charges - - - - 1 - 1
- deferred tax - - - - 14 - 14
Share of other comprehensive income of jointly
controlled and associated companies - - - - - 30 30
Net translation differences on foreign operations - - - - - 159 159
Total comprehensive income for the year 18,763 - - 28 (69) 189 18,911
2011 first interim dividend- in lieu of final dividend (note 8) (1,053) - - - - - (1,053)
2012 first interim dividend (note 8) (1,287) - - - - - (1,287)
At 31st December 2012 179,427 4,599 (1,108) 1,662 (69) 2,253 186,764
2012 FINAL RESULTS
48
14. Changes in accounting standards
The following relevant amendments were required to be adopted by the Group effective from 1st January
2012:
HKAS 12 (Amendment) Income taxes
HKFRS 7 (Amendment) Disclosures – Transfers of Financial Assets
The Group early adopted the amendment to HKAS 12 in 2010.
HKFRS 7 (Amendment) introduces new disclosure requirements on transfers of financial assets. Disclosure is
required (by class of asset) of the nature and carrying amount of, and a description of the risks and rewards of,
financial assets that have been transferred to another party yet remain on the entity’s balance sheet. The gain
or loss on the transferred assets and any retained interest in those assets must be disclosed. In addition, other
disclosures must enable users to understand the amount of any associated liabilities, and the relationship
between the financial assets and associated liabilities. The disclosures must be presented by type of
involvement. For example, the retained exposure could be presented by type of financial instrument (such as
guarantees, call or put options), or by type of transfer (such as factoring of receivables, securitisations or
securities lending). It also introduces new disclosures in respect of risk exposures arising from transferred
financial assets that are either fully derecognised or derecognised not in their entirety, yet the entity still has
continuing involvement in them. The amendment has had no significant impact on the results and financial
position of the Group.
The adoption of the other revisions, amendments and interpretations has had no effect on the Group’s
annual accounts.
15. Events after the reporting period
In January 2012, the Group entered into an agreement with Sino-Ocean Land Limited to fund the whole of
the remaining land premium (and associated taxes) payable in respect of the Daci Temple project and
certain working capital requirements in an aggregate amount of US$230 million. Following this
transaction, the Group’s interest in the project was increased to 81%, reflecting its contribution to the
overall funding of the project. Sino-Ocean Land had a call option, exercisable for one year commencing
from the date of the agreement, to purchase the Group’s additional interest in the project for an amount
equal to one half of the additional funding plus interest at the rate of 10% per annum. The Group had the
right, exercisable for one year commencing one week before the end of the call option period, to require
Sino-Ocean Land to purchase the Group’s additional interest in the project for an amount equal to one half
of the above additional funding plus interest at the rate of 10% per annum.
In January 2013, the above arrangements were amended. Sino-Ocean Land purchased half of the Group’s
additional interest in the project and the options in respect of the remaining part of the additional interest
were extended for a further year. The effect of the amended arrangements was to reduce the Group’s
interest in the project to 63% and to increase Sino-Ocean Land’s interest in the project to 37%. Until the
extended options described above are exercised or lapse, the Group’s remaining additional interest in the
project will be accounted for as a secured loan and the Group’s existing interest will continue to be
accounted for as a 50% interest in a jointly controlled entity.
In January 2013, the Group and Bal Harbour Shops entered into an agreement in respect of the joint
venture which is to develop the retail component of Brickell CityCentre in Miami, Florida, U.S.A. The
Group holds an 87.5% interest in the joint venture and will remain the primary developer while Bal
Harbour Shops will contribute equity and its retail expertise as co-developer.
In March 2013, the Group issued medium-term notes of US$500 million.
In March 2013, the company which owns the existing Citygate Outlets development at Tung Chung in
Hong Kong (in which the Group has a 20% equity interest) won a tender to develop an adjacent
commercial site.
2012 FINAL RESULTS
49
ADDITIONAL INFORMATION Corporate Governance
The Company is committed to maintaining a high standard of corporate governance. The Company complied
with all the code provisions set out in the Corporate Governance Code (“CG Code”) contained in Appendix 14
to the Rules Governing the Listing of Securities on The Stock Exchange of Hong Kong Limited (the “Listing
Rules”) throughout the year with the following exceptions which it believes do not benefit shareholders:
Sections A.5.1 to A.5.4 of the CG Code in respect of the establishment, terms of reference and resources of
a nomination committee. The Board has considered the merits of establishing a nomination committee but
has concluded that it is in the best interests of the Company and potential new appointees that the Board
collectively reviews and approves the appointment of any new Director as this allows a more informed and
balanced decision to be made by both the potential Director and the Board as to suitability for the role.
The Company has adopted codes of conduct regarding securities transactions by Directors and by relevant
employees (as defined in the CG Code) on terms no less exacting than the required standard set out in the Model
Code for Securities Transactions by Directors of Listed Issuers (the “Model Code”) contained in Appendix 10 to
the Listing Rules.
On specific enquiries made, all Directors have confirmed that, in respect of the accounting period covered by the
annual report, they have complied with the required standard set out in the Model Code and the Company’s code
of conduct regarding Directors’ securities transactions.
Details of the Company’s corporate governance principles and processes will be available in the 2012 annual
report.
The annual results have been reviewed by the Audit Committee of the Company.
Annual Report
The 2012 Annual Report containing all the information required by the Listing Rules will be published on the
Stock Exchange website and the Company website www.swireproperties.com. Printed copies will be available
to shareholders on 5th
April 2013.
List of Directors
As at the date of this announcement, the Directors of the Company are:
Executive Directors: C.D. Pratt (Chairman), M. Cubbon, M.M.S. Low, G.M.C. Bradley,
D.C.Y. Ho and G.J. Ongley;
Non-Executive Directors: J.W.J. Hughes-Hallett, P.A. Kilgour and M.B. Swire;
Independent Non-Executive Directors: S.E. Bradley, J.C.C. Chan, P.K. Etchells, S.T. Fung
and S.C. Liu.
2012 FINAL RESULTS
50
GLOSSARY
Terms
Adjusted underlying profit Underlying profit
less profit from the disposal of investment
properties and net impairment losses from hotels
and trading properties.
Attributable gross rental income Gross rental
income less amount shared by non-controlling
interests plus the Group’s share of gross rental
income of jointly controlled and associated
companies.
Equity attributable to the Company's
shareholders Equity before non-controlling
interests.
Gross borrowings Total of loans, bonds,
overdrafts and perpetual capital securities.
Gross rental income 100% of gross rental income
of Group companies.
Net assets employed Total equity plus net debt.
Net debt Gross borrowings net of bank deposits and
bank balances.
Underlying equity attributable to the Company's
shareholders Reported equity before non-controlling
interests, adjusted for the impact of deferred tax on
investment properties, unrecognized valuation gains on
hotels held as part of mixed-use developments,
revaluation of investment properties occupied by the
Group and cumulative depreciation of investment
properties occupied by the Group.
Underlying profit Reported profit adjusted principally
for the impact of changes in the fair value of
investment properties and the deferred tax on
investment properties.
Ratios
Earnings/(loss)
per share =
Profit/(loss) attributable to the
Company's shareholders
Weighted average number of
shares in issue during the year
Return on average
equity
attributable to
the Company’s
shareholders
=
Profit/(loss) attributable to the
Company’s shareholders
Average equity during the year
attributable to the Company’s
shareholders
Return on average
underlying
equity
attributable to
the Company’s
shareholders
=
Underlying profit/(loss)
attributable to the Company’s
shareholders
Average underlying equity
during the year attributable to
the Company’s shareholders
Interest cover = Operating profit/(loss)
Net finance charges
Cash interest cover =
Operating profit/(loss)
Total of net finance charges
and capitalised interest
Dividend cover
=
Profit/(loss) attributable to the
Company’s shareholders
Dividends paid and proposed
Gearing ratio = Net debt
Total equity
2012 FINAL RESULTS
51
FINANCIAL CALENDAR AND INFORMATION
FOR INVESTORS
Financial Calendar 2013
Share trade ex-dividend 2nd
April
Share register closed for 2012 second interim dividend entitlement 5th
April
Annual Report available to shareholders 5th
April
Payment of 2012 second interim dividend 2nd
May
Share register closed for attending and voting at Annual General Meeting 2nd
– 7th
May
Annual General Meeting 7th
May
Interim results announcement August 2013
2013 first interim dividend payable October 2013
Registered Office
Swire Properties Limited
33rd
Floor, One Pacific Place
88 Queensway
Hong Kong
Registrars
Computershare Hong Kong Investor Services Limited
17M Floor, Hopewell Centre
183 Queen’s Road East
Hong Kong
Website: www.computershare.com
Stock Code
Hong Kong Stock Exchange 01972
Auditors
PricewaterhouseCoopers
Investor Relations
E-mail: [email protected]
Public Affairs
E-mail: [email protected]
Tel: (852) 2844-3888
Fax: (852) 2918-9960
Website: www.swireproperties.com
Request for Feedback
In order that we may improve our reporting,
we would be grateful to receive your
comments on our public announcements and
disclosures via e-mail to